tailieunhanh - Impact of globalization on economic growth in Vietnam: An empirical analysis

This study aims at investigating the impact of globalization on economic growth in the case of Vietnam. Empirical analysis is done by using time series data for the period from 1995 to 2014. The paper tested the stationary cointegration of time series data and utilized the error correction modeling technique to determine the short run relationships among economic growth, globalization, foreign direct investment, balance of trade and exchange rate variables. | Journal of Economics and Development, , , April 2018, pp. 32-47 ISSN 1859 0020 Impact of Globalization on Economic Growth in Vietnam: An Empirical Analysis Tran Tho Dat National Economics University, Vietnam Email: tranthodat@ Nguyen Thi Cam Van National Economics University, Vietnam Email: ncvantkt@ Received: 13 October 2017 | Revised: 15 December 2017 | Accepted: 1 Febuary 2018 Abstract This study aims at investigating the impact of globalization on economic growth in the case of Vietnam. Empirical analysis is done by using time series data for the period from 1995 to 2014. The paper tested the stationary cointegration of time series data and utilized the error correction modeling technique to determine the short run relationships among economic growth, globalization, foreign direct investment, balance of trade and exchange rate variables. Then, the long run relationship between economic growth and the variables representing economic integration were estimated by ordinary least square. The results show that globalization, measured by the KOF index, promotes economic growth and Vietnam has gained from integrating into the global economy. The overall index of globalization had positively and significantly impacted the economic growth in Vietnam. The results also indicated that economic globalization had a significantly positive effect on economic growth in the period examined. The study further revealed that foreign direct investment and the exchange rate affect economic growth positively whereas balance of trade affects economic growth negatively. Keywords: Globalization; economic growth; trade balance; foreign direct investment; cointegration. JEL code: F63, O47, C32. Journal of Economics and Development 32 Vol. 20, , April 2018 1. Introduction main characteristics of globalization is greater trade in goods and services both between nations and within regions. Many of the industrializing countries are winning a rising .