WSEAS Transactions on Business and Economics
Print ISSN: 1109-9526, E-ISSN: 2224-2899
Volume 16, 2019
The Role of Financial Development in the Vietnam Economy
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Abstract: This paper analysed the role of financial development in the Vietnam economy from Quarter 3, 2004 to Quarter 4, 2018. By applying the Autoregressive Distributed Lag (ARDL) model in data analysis, the findings show that there existed concurrent effects of financial development in the economy over short-term, as well as long-term, periods. Moreover, this paper succeeds in pointing out the medium role of the real estate market in the transmission mechanism of financial development in the Vietnam economy, which is a new finding in the realm of extant research. Furthermore, the result indicates that financial development played an essential role in fostering economic growth from the angle of the real estate market. In turn, financial development, from the angle of banking, had indirect effects on the economy through the real estate market. These findings are important for world economies, especially for developing countries like Vietnam
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Pages: 471-476
WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 16, 2019, Art. #52