Impact of public investment on economic growth of Phu Yen province

Abstract

The purpose of this study is to determine the impact of public investment on the economic growth of Phu Yen province and on that basis, the author recommended some solutions to use this investment more effectively. The study uses the vector error correction model (VECM - Vector Error Correction Model) with data collected from Phu Yen Provincial Statistical Yearbook and related agencies in 27 years, from 1996 to 2022. The research results show that public investment has a positive impact on the economic growth of Phu Yen province in both the short and long term, in which the level of impact in the long term is higher than in the short term. In addition, the research results also show that labor working in the economy also positively impacts long-term and short-term economic growth. For private investment, it has a negative impact on GRDP growth in the short term and a positive impact in the long term. These findings have important implications for public investment management activities in Phu Yen province.