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Economic growth and balance-of-payments constraint in Vietnam


  • Alberto Bagnai

    () (Department of Economics, Gabriele d'Annunzio University (Italy))

  • Arsène Rieber

    () (CREAM, Rouen University (France))

  • Anh Dao Tran

    () (CREAM, Rouen University (France))


Our paper applies a multi-country BoP constrained growth model to Vietnam for the period 1985-2010. We find that Vietnam grew less than the rate predicted by the model during the entire period considered, but with different behavior for the 1998-2010 sub-period. The relative price effect is neutral, allowing the volume effects to dominate in setting the BoP constraint. The high income elasticities of exports enable growth in the advanced countries to have a multiplier effect on the Vietnamese economy. However, this effect is hindered by a high “appetite” for imports coming from Asia. We also assess the impact of the current crisis on Vietnam’s growth for the period 2011-2017.

Suggested Citation

  • Alberto Bagnai & Arsène Rieber & Anh Dao Tran, 2013. "Economic growth and balance-of-payments constraint in Vietnam," a/ Working Papers Series 1302, Italian Association for the Study of Economic Asymmetries, Rome (Italy).
  • Handle: RePEc:ais:wpaper:1302

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    References listed on IDEAS

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    More about this item


    Economic growth; BoP-constrained growth model; Multi-country model; Asia; Vietnam;

    JEL classification:

    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East


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