Does public investment stimulate economic growth in Vietnam? An ARDL approach to test Keynes's theories

The short- and long-term effects of public investment on economic growth continue to be vigorously debated worldwide and in Vietnam. This study employs the ARDL model to analyze the effect of public investment on Vietnam's economic development during the years 1995 to 2019 in order to augment e...

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Bibliographic Details
Published inJournal of Eastern European and Central Asian research Vol. 10; no. 2; pp. 301 - 310
Main Author Pham, Manh Hung
Format Journal Article
LanguageEnglish
Published Minneapolis The Institute of Eastern Europe and Central Asia 04.03.2023
IEECA
Subjects
Consumption
Economic development
Economic growth
Economic reform
Economic statistics
Expenditures
Fiscal policy
Foreign investment
GDP
Government spending
Gross Domestic Product
Influence
Labor economics
Long term
private investment
Public investment
Vietnam
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Summary:The short- and long-term effects of public investment on economic growth continue to be vigorously debated worldwide and in Vietnam. This study employs the ARDL model to analyze the effect of public investment on Vietnam's economic development during the years 1995 to 2019 in order to augment empirical evidence on this topic. Research results show that growth in public investment, private investment and foreign investment all have a positive impact on economic growth in the long run. However, the short-term effect of public investment has not been confirmed. Similarly, the effect of public investment on economic growth is less than that of private investment. Based on empirical analysis, policy recommendations for improving the effectiveness of public investment in Vietnam are proposed.
ISSN:2328-8272
2328-8280
DOI:10.15549/jeecar.v10i2.1155