Relationship between inflation and economic growth in Vietnam
Main Article Content
Abstract
Vietnam government considers inflation adjustment as a primary goal of
policies planning and implementing to achieve economic stability and GDP growth.
Therefore, defining the threshold in inflation-GDP growth relationship is an important
task to propose target inflation rate precisely. This paper investigates the threshold
between inflation and GDP growth in Vietnam. Inflation is assumed to have a
nonlinear relationship with GDP growth. The results confirm the existence of the
threshold at 6 per cent inflation point, and the negative impacts on GDP growth of
hyperinflation above the threshold and too low inflation beyond the threshold. Taking
into account the total impact of inflation on GDP growth, the effects are negative.
This finding suggests that Vietnam authorities should target lower inflation of 6 per
cent to improve GDP growth.
Downloads
Metrics
Article Details
Licensing
TURCOMAT publishes articles under the Creative Commons Attribution 4.0 International License (CC BY 4.0). This licensing allows for any use of the work, provided the original author(s) and source are credited, thereby facilitating the free exchange and use of research for the advancement of knowledge.
Detailed Licensing Terms
Attribution (BY): Users must give appropriate credit, provide a link to the license, and indicate if changes were made. Users may do so in any reasonable manner, but not in any way that suggests the licensor endorses them or their use.
No Additional Restrictions: Users may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
