The Impact of Remittances on the Economic Growth in Vietnam: A Study Relied on the VAR Model


Authors

  • Nguyen Phuc Hien Foreign Trade University
  • Phan Ngoc Thuy Dung Foreign Trade University
DOI: https://doi.org/10.57110/jebvn.v3i1.158

Keywords:

Remittances, economic growth, VAR

Abstract

Remittances have become an important financial resource in developing countries, including Vietnam. In the last two decades, remittance flows to Vietnam increased rapidly, exceeding other financial flows such as Foreign Direct Investment (FDI) and Official Development Assistance (ODA), and have made Vietnam among the top countries receiving large remittance flows in Southeast Asia. Therefore, by using the quantitative VAR model and the data series from 2002 to 2020, this study analyzes the impact of remittances on Vietnam’s economic growth in the short term and predicts their impact in the long term. Overall, the research results show a positive impact of remittances on GDP growth in the short term, and a negative impact in the long term, which is the basis for proposing policy implications for state management.

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Published

24-02-2023

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How to Cite

Nguyen Phuc Hien, & Phan Ngoc Thuy Dung. (2023). The Impact of Remittances on the Economic Growth in Vietnam: A Study Relied on the VAR Model. VNU JOURNAL OF ECONOMICS AND BUSINESS, 3(1). https://doi.org/10.57110/jebvn.v3i1.158

Issue

Vol. 3 No. 1

Section

Original Article

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