Inflation and the public investment: growth relationship in Vietnam
Public capital spending positively contributes to economic growth and development in many countries worldwide. However, questions concerning the importance of inflation in the public investment–growth relationship are of great interest. This study examines the role of inflation in the public investm...
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| Định dạng: | Conference Paper |
| Ngôn ngữ: | English |
| Thông tin xuất bản: |
UEH Publishing House
2017
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| Chủ đề: | |
| Truy cập trực tuyến: | http://digital.lib.ueh.edu.vn/handle/UEH/55508 |
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| Tóm tắt: | Public capital spending positively contributes to economic growth and development in many
countries worldwide. However, questions concerning the importance of inflation in the public
investment–growth relationship are of great interest. This study examines the role of inflation
in the public investment–growth relationship in Vietnam using the two-step GMM Arellano-
Bond estimators for a balanced panel data of 52 provinces during the 2005–2014 period. More
interestingly discussed are the empirical findings. First, inflation significantly increases the
volume of public capital spending. Second, public investment and inflation enhance economic
growth, but their interaction term impedes it. Third, private investment, government recurrent
expenditure, and trade openness are the significant determinants of growth. These findings
suggest critical policy implications related to public capital spending and inflation in developing
countries, specifically the Vietnam government. |
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