An Empirical Study of Economic Growth Promoted by Foreign Trade in Vietnam
|Keywords||Vietnam foreign trade economic growth regression|
The relation between foreign trade and economic growth has always been a hot issue in the field of international trade. In this paper. Based on the mainstream theory on international trade, this paper study the relationship between foreign trade and economic growth in Vietnam since the Reform and Opening Up, try to explain partly why does the rapid economic growth occur from a trade perspective. The course of reform and opening up in Vietnam, is a positive development in the history of foreign trade. while, there are many unreasonable phenomenon in Vietnam’s foreign trade, such as export structure is not higher, foreign market shows a significant geographical features, foreign trade deficit increased every year and so on. These issues getting more and more complex with Vietnam’s accession to WTO and the completion of the CAFTA, opportunities and challenges appear together. This paper reviews the current theory and research methods of international trade, and describes the development of Vietnam’s economy and foreign trade history, then study Vietnam’s foreign trade situation and the problems with descriptive statistics, cointegration, regression and other econometric Methods. Finally, here are some strategies to improve the situation of Vietnam Foreign Trade.This paper consists of five chapters:the first, shows the significance of topics, and defines what is the research object, and what research methods needed; the second, reviews the theory of economic growth and foreign trade theory, and Comment those theory which are positive, pessimistic or compromising, at the end of the chapter, elaborate the mechanism that foreign trade promote Vietnamese economy from exports and imports, respectively; the third, recalls the history of economic development in Vietnam, analysises its changes and trends, these works provide a realistic basis to formulate foreign trade policies; the fourth, make some quantitative analysis on relationship between foreign trade and GDP, consumption, investment, and draw some conclusions in the end; the fifth, on the basis of the previous analysis, drawing on experience of successful countries, especially China, some advises are given to Vietnam to improve its foreign trade and the level of economic development.