ECONOMIC GROWTH CONSTRAINTS IN VIETNAM: A STUDY USING THE GROWTH DIAGNOSTIC APPROACH

Recent studies have clearly pointed out a decreasing trend of Vietnam’s economic growth in the short and the medium terms. This paper presents a study applying the growth diagnostic method for Vietnam to determine growth constrains. The binding growth constrains of Vietnam are found to include a poor business environment; an underdeveloped infrastructure, especially the transportation network market; failures related to information externalities, learning externalities and coordination failures. Notably, the energy infrastructure could be a vital constraint in a near future, but is not a binding constraint at present. The inefficiency of financial intermediaries and the government’s over-investment could become a binding constraint when the economy returns to its high growth path.

Ekonomski horizonti, 2016, 18(1), 33-52. Elektronska verzija objavljena 25. aprila 2015. doi:10.5937/ekonhor1601033T

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