Applying the VAR model to study the relationship between employment and economic growth of Quangninh province

Abstract

Quangninh is an industrial province, the income from employment that the industry group creates always contributes significantly to the total value of economic growth of the province. In recent years, the province’s just development orientation is to take the service and tourism sectors as a spearhead, so te proportion of employment and economic growth of this group of industries is tending to increase over time. Through statistics from 2000 to 2020 of Quangning province, the study proposes to use the VAR model as a basis for quantifying the relationship between employment and economic growth of Quangninh province in all three regional industry groups I, II, III. The results achieved have confirmed that there is a real relationship between employment and economic growth in all three groups to ensure statistics significance. From the research results combined with the actual conditions of each industry group, the study suggests some specific solutions for each industry group in order to stabilise and increase employment growth to create a suitable momentum to promote sustainable economic growth in the digital are for Quangninh province in the next period.