The impact of foreign capital flows, trade openness and human capital on economic growth in Vietnam
Vol. 131 No. 5A (2022), Original Article
Vol. 131 No. 5A (2022)

The impact of foreign capital flows, trade openness and human capital on economic growth in Vietnam

Original Article
https://doi.org/10.26459/hueunijed.v131i5A.6600
Published 2022-01-11
Nguyen Hai Yen
University of Economics, Hue University, 99 Ho Dac Di St., Hue, Vietnam
Nguyen Ngoc Chau
University of Economics, Hue University, 99 Ho Dac Di St., Hue, Vietnam
Pham Xuan Hung
University of Economics, Hue University, 99 Ho Dac Di St., Hue, Vietnam
Le Nu Minh Phuong
University of Economics, Hue University, 99 Ho Dac Di St., Hue, Vietnam
Duong Thi Tuyen
University of Economics, Hue University, 99 Ho Dac Di St., Hue, Vietnam
PDF (Vietnamese)

Keywords

dòng vốn nước ngoài
độ mở thương mại
nguồn vốn con người
tăng trưởng kinh tế
ARDL foreign capital flows
trade openness
human capital
economic growth
ARDL

Abstract

The study examines the impact of foreign capital flows, trade openness and human capital on economic growth in Vietnam during the period from 1989 to 2019 by applying the bounds test ARDL methodology. The findings indicate that ODA, trade openness and human capital have significantly positive effects on economic growth in the long run, while external debt has an insignificant impact on growth. FDI has a significant and negative effect in the long run, however, FDI is one of the primary determinants of growth in the short run in both direct and indirect effects because there is Granger causality from FDI to GDP, trade openness and human capital. Therefore, Vietnam should have appropriate policies to enhance the effectiveness of FDI. However, it should not only rely on foreign capital flows but also promote domestic determinants such as human capital, trade openness and domestic capital to achieve sustainable growth.

https://doi.org/10.26459/hueunijed.v131i5A.6600
PDF (Vietnamese)

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