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The Transmission Mechanism of Bilateral Relationship Between Exports and Economic Growth in Vietnam

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  • Phan The Cong

    (Faculty of Economics and Law, University of Thuongmai, Vietnam,)

  • Nguyen Quang Hiep

    (Hung Yen Industrial College, Vietnam.)

Abstract

This article uses the vector error correction model to analyze the transmission mechanism of bilateral relationship between exports and economic growth in Vietnam over the period 1999-2014. The results show that: (1) Existing bilateral relationship between exports and economic growth in Vietnam through the transmission channel in both short and long term, (2) exports growth has been the motivation for economic growth and the resource factors play an important role in the transmission of the effects of exports to economic growth of Vietnam, (3) economic growth also contribute to export growth by improving competitiveness in international trade through increasing productivity.

Suggested Citation

  • Phan The Cong & Nguyen Quang Hiep, 2017. "The Transmission Mechanism of Bilateral Relationship Between Exports and Economic Growth in Vietnam," International Journal of Economics and Financial Issues, Econjournals, vol. 7(2), pages 536-543.
    • Handle: RePEc:eco:journ1:2017-02-71
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    References listed on IDEAS

    as
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    3. Titus O. Awokuse, 2003. "Is the export-led growth hypothesis valid for Canada?," Canadian Journal of Economics, Canadian Economics Association, vol. 36(1), pages 126-136, February.
    4. Granger, C. W. J., 1988. "Some recent development in a concept of causality," Journal of Econometrics, Elsevier, vol. 39(1-2), pages 199-211.
    5. Judith Giles & Cara Williams, 2001. "Export-led growth: a survey of the empirical literature and some non-causality results. Part 1," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 9(3), pages 261-337.
    6. Dierk HERZER & Felicitas NOWAK‐LEHMANN D. & Boriss SILIVERSTOVS, 2006. "Export‐Led Growth In Chile: Assessing The Role Of Export Composition In Productivity Growth," The Developing Economies, Institute of Developing Economies, vol. 44(3), pages 306-328, September.
    7. Bhagwati, Jagdish N, 1988. "Export-Promoting Trade Strategy: Issues and Evidence," The World Bank Research Observer, World Bank, vol. 3(1), pages 27-57, January.
    8. Robert A. Blecker, 2009. "Long-Run Growth in Open Economies: Export-Led Cumulative Causation or a Balance-of-Payments Constraint?," Working Papers 2009-23, American University, Department of Economics.
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    Cited by:

    1. Sayef Bakari & Mohamed Mabrouki & Asma Elmakki, 2018. "The Nexus Between Industrial Exports And Economic Growth In Tunisia: Empirical Analysis," Journal of Smart Economic Growth, , vol. 3(2), pages 31-53, December.
    2. Bakari, Sayef, 2018. "The Impact Of Citrus Exports On Economic Growth: Empirical Analysis From Tunisia," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 6(1), January.
    3. Sayef Bakari & Mohamed Mabrouki, 2017. "The Effect Of Agricultural Exports On Economic Growth In South-Eastern Europe: An Empirical Investigation Using Panel Data," Journal of Smart Economic Growth, , vol. 2(4), pages 49-64, December.

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    More about this item

    Keywords

    Economic Growth; Export; The Virtuous Circle Model; Verdoorn's Law;
    All these keywords.

    JEL classification:

    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
    • G01 - Financial Economics - - General - - - Financial Crises
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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