Impact of budget deficit on growth: A case study of Vietnam

Abstract

This study examines the extent to which budget deficit affects economic
growth in Vietnam in the 2007-2017 period. Using the panel data regression,
where the dependent variable is the economic growth (GDP), independent
variables include consumer price index (CPI), foreign direct investment
(FDI) and budget deficit (BD), the results show that during the research
time frame, budget deficit has a positive correlation with economic growth
at a statistically significant level, while no significant correlation is found
between CPI and FDI with the dependent variable.