FINANCIAL GLOBALIZATION, TRADE GLOBALIZATION AND ECONOMIC GROWTH: A CASE STUDY OF VIETNAM

Abstract

This study focuses on analyzing the impact of financial globalization and trade globalization on the economic growth of Vietnam. Accordingly, financial globalization and trade globalization are measured through composite indexes instead of component indexes in most of the previous studies. The data sample was collected in Vietnam, a country that is transitioning to globalization with the goal of promoting economic growth. Regarding the estimation method, the authors use the Autoregressive Distributed Lag (ARDL) method to estimate the research model. This method is advantageous for estimating the research model with a limited data sample size and is suitable for developing countries such as Vietnam. The research results indicate that financial globalization and trade globalization play important roles in the economic growth of Vietnam in both the short and long term. Specifically, trade globalization appears to be more important than financial globalization in promoting economic growth in the long term. Meanwhile, financial globalization is more effective than trade globalization in promoting economic growth in the short term. Thanks to the research results, the study has achieved certain success in finding empirical evidence on the role of financial globalization and trade globalization in the economic growth of Vietnam.