The Inter-linkage among FDI, Export and Economic Growth in Vietnam: A Causality Analysis

Vu Thi Van, HUANG Dechun, Md. Ekram Hossain, Tran Qung Dung


The aim of this paper is to investigate the linkage among export, foreign direct investment and economic growth in Vietnam. By using Granger causality method based on VECM model to analyze data over the period 1990-2015, this study estimates the causal relationship among FDI, export and Vietnamese economic growth in short run and long run. The unit root test and Johansen test are also applied to verify the stationary of variables and co-integration among three time-series. The findings indicate that both FDI and export Granger cause Vietnamese economic growth and have positive effects on Vietnamese economic growth in long run. Besides, the short-run influences of FDI on Vietnamese economic growth and export are also demonstrated in this research.

Keywords: Export; FDI; Granger Causality; VECM model; Vietnamese Economic Growth

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ISSN (Paper)2222-1905 ISSN (Online)2222-2839

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