External Debt and Co2 Emissions in Vietnam

Abstract

The paper aims to explore the relationship between external debt and CO2 emissions in Vietnam during 1989-2018. Data in the study were collected from the World Bank, website: countryeconomy.com. This study used the Vetor Autoregression Model (VAR) to analyze the relationship between external debt and CO2 emissions. The research results show that there are a twoway relationship between external debt and CO2 emissions, and has interaction among external debt and electricity consumption in Vietnam. Based on the research result, Vietnam needs to have appropriate policies for sustainable economic growth.