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Financial structure and economic growth: the case of Vietnam

Author

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  • Xuan Vinh Vo

    (University of Economics Ho Chi Minh City
    CFVG Ho Chi Minh City)

  • Huu Huan Nguyen

    (University of Economics Ho Chi Minh City)

  • Khanh Duy Pham

    (University of Economics Ho Chi Minh City)

Abstract

This paper investigates the role of financial structure in promoting economic growth in Vietnam using a number of econometric techniques. The results indicate that there is no strong relationship between stock market development and economic growth. In particular, the Granger causality tests suggest no causal effects between these variables. The impulse response tests and the variance decomposition analysis present evidence of the one-way impact from the stock market capitalization variable on the change of economic growth, however, this effect is marginal.

Suggested Citation

  • Xuan Vinh Vo & Huu Huan Nguyen & Khanh Duy Pham, 2016. "Financial structure and economic growth: the case of Vietnam," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 6(2), pages 141-154, August.
    • Handle: RePEc:spr:eurasi:v:6:y:2016:i:2:d:10.1007_s40821-016-0042-8
    DOI: 10.1007/s40821-016-0042-8
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    12. Vu Linh Toan Le & Tien Hoang Nguyen & Khanh Duy Pham, 2023. "What Drives Industry 4.0 Technologies Adoption? Evidence from a SEM-Neural Network Approach in the Context of Vietnamese Firms," Sustainability, MDPI, vol. 15(7), pages 1-32, March.
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    15. Monir Uddin Ahmed & Md. Moniruzzaman Muzib & Md. Mahedi Hasan, 2016. "Inflation, inflation uncertainty and relative price variability in Bangladesh," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 6(3), pages 389-427, December.
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    More about this item

    Keywords

    Financial structure; Economic growth; Vietnam; Granger; VAR;
    All these keywords.

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)

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