On the causality relationship between demographic changes, economic growth and domestic savings in Vietnam
The study aims to investigate the short run and long run relationships between demographic factors (population growth and the age dependency ratio), economic growth (GDP per capita growth) and domestic savings in Vietnam for the period of 1986 to 2016 using the cointegration and Wald tests. The fi...
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| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2018
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| Online Access: | http://journalarticle.ukm.my/19791/1/jeko_522-3.pdf http://journalarticle.ukm.my/19791/ https://www.ukm.my/jem/issue/v52i2/ |
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| Summary: | The study aims to investigate the short run and long run relationships between demographic factors (population growth
and the age dependency ratio), economic growth (GDP per capita growth) and domestic savings in Vietnam for the period
of 1986 to 2016 using the cointegration and Wald tests. The findings revealed that there is a cointegration relationship
between domestic savings and demographic and economic variables, while Wald test shows a unique causality trend
running from population growth to domestic savings in Vietnam. The policy implications from this study suggest that
the Vietnam government should focus on boosting economic growth (GDP per capita growth) through mobilizing its
resources, managing fertility level between urban and rural areas and population growth in relation with growth rate
of the economy. Moreover, the Vietnam government should take advantage of the golden population structure and
limit the effects of the dependency ratio through offering attractive beneficial programs for the elderly and provide
opportunities to increase their productivity, and thus spur savings in Vietnam. |
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