EFFECT OF FISCAL AND MONETARY POLICY ON PRIVATE INVESTMENT IN VIETNAM

Q2 Business, Management and Accounting

Business: Theory and Practice Pub Date : 2022-12-01 DOI:10.3846/btp.2022.15154

L. Tung

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Abstract

This paper aims to identify the effect of fiscal and monetary policy on private investment in Vietnam, a transition economy having robust economic growth. The quantitative analyze process employs the Autoregressive Distributed Lag (ARDL) model with a quarterly database in 2004–2020. The bound test study indicates that there is a long-term cointegration relationship between the policy variables and private investment. In the long run, the estimated result shows that the government expenditure and money supply have positive and significant impacts on private investment, however, the exchange rate has a negative and significant impact on private investment. In the short run, government expenditure also has a significant positive impact on private investment in Vietnam, besides, the lag of the private investment variable has a positive and significant which shows the supporting impact on private investment on itself. The coefficients of the tax revenue are positive and insignificant in the estimated functions. Therefore, the evidence suggests that the government needs to increase its expenditure which helps improve private investment in Vietnam in the future.

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财政货币政策对越南私人投资的影响

本文旨在确定财政和货币政策对越南私人投资的影响，越南是一个经济增长强劲的转型经济体。定量分析过程采用2004-2020年季度数据库的自回归分布滞后(ARDL)模型。约束检验研究表明，政策变量与民间投资之间存在长期协整关系。从长期来看，估计结果表明，政府支出和货币供应量对私人投资具有显著的正向影响，而汇率对私人投资具有显著的负向影响。在短期内，越南政府支出对私人投资也有显著的正向影响，而且私人投资变量的滞后性为正且显著，表明私人投资对其自身具有支持作用。在估计函数中，税收的系数为正且不显著。因此，有证据表明，政府需要增加其支出，这有助于改善越南未来的私人投资。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Business: Theory and Practice Business, Management and Accounting-Strategy and Management

CiteScore

5.00

自引率

0.00%

发文量

审稿时长

8 weeks

期刊介绍： The journal "Business: Theory and Practice" is published from 2000. 1 vol (4 issues) per year are published. Articles in Lithuanian, English, German, Russian. The Journal has been included into database "ICONDA" and "Business Source Complete".