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Globalization and Aid Inflows in the Economic Growth of Vietnam

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  • Jai S Mah

    (Division of International Studies, Ewha Womans University, Seodaemun-gu, Seoul 03760, South Korea)

Abstract

This paper aims to reveal the sources of the rapid growth of the Vietnamese economy since economic reform over the period 1986–2013. It applies the autoregressive distributed lags variance bounds test and the error correction model, focusing on the roles of globalization and aid in economic growth. The empirical evidence supports neither the export-led nor the FDI-led economic growth hypothesis. Rather, the increase in import values is revealed to have caused economic growth. When the import variable is excluded from the estimated model, aid inflows are shown to have caused the economic growth in Vietnam.

Suggested Citation

  • Jai S Mah, 2017. "Globalization and Aid Inflows in the Economic Growth of Vietnam," Global Economy Journal (GEJ), World Scientific Publishing Co. Pte. Ltd., vol. 17(2), pages 1-8, June.
    • Handle: RePEc:wsi:gejxxx:v:17:y:2017:i:02:n:gej-2016-0063
    DOI: 10.1142/GEJ-2016-0063
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    More about this item

    Keywords

    globalization; import expansion; aid; growth; Vietnam;
    All these keywords.

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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