IDEAS home Printed from https://ideas.repec.org/a/scn/031730/16485147.html
   My bibliography  Save this article

Exchange rate management in Vietnam for sustaining stable and long-term economic growth

Author

Listed:
  • HAI AN NGUYEN

    (Foreign Trade University)

Abstract

Целью данной работы является эмпирическое измерение влияния обесценивания валюты на инфляцию и торговый баланс на примере Вьетнама. Автор использует квартальные данные с 2000 по 2012 год для построения модели вектора авторегрессии (VAR). Полученные результаты полностью соответствуют принципам экономической теории. Функции импульсных откликов показывают, что обесценение валюты оказывает значительное негативное воздействие на инфляцию, имея при этом положительное влияниена сальдо торгового баланса. Основываясь на полученных результатах, автор предлагает: 1) использовать стабилизацию обменного курса для сдерживания инфляции; 2) повышать качество экспортных товаров для повышения конкурентоспособности.The purpose of this paper is to measure empirically the effects of currency depreciation on inflation and trade balance in the case of Vietnam. The author utilizes the quarterly data from 2000 to 2012 for the Vector Auto-Regression (VAR) model to build the impulse response functions and variance decompositions of inflation and trade balance. The obtained results are remarkably consistent with economic principles in the theoryreview. The impulse response functions indicate that currency depreciation has considerable negative impact on inflation while having fairly positive impacts on trade balance. However, variance decompositions of trade balance show that exchange rate itself can hardly explain much about the change in trade balance. Basing on these results, the author proposes (1) stabilization of exchange rate to restrain inflation and (2) enhancing the quality of exported goods to improve competitiveness.

Suggested Citation

  • Hai An Nguyen, 2015. "Exchange rate management in Vietnam for sustaining stable and long-term economic growth," Review of Business and Economics Studies, CyberLeninka;Федеральное государственное образовательное бюджетное учреждение высшего профессионального образования «Финансовый университет при Правительстве Российской Федерации» (Финансовый университет), issue 2, pages 58-66.
  • Handle: RePEc:scn:031730:16485147
    as

    Download full text from publisher

    File URL: http://cyberleninka.ru/article/n/exchange-rate-management-in-vietnam-for-sustaining-stable-and-long-term-economic-growth
    Download Restriction: no

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:scn:031730:16485147. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CyberLeninka). General contact details of provider: http://cyberleninka.ru/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.