FISCAL POLICY AND PROVINCIAL GROWTH: THE CASE OF VIETNAM

Nguyen Thi Nguyet

Central Institute for Economic Management (CIEM) - Ministry of Planning and Investment (MPI), Hanoi City, Vietnam

This paper focuses on the evaluation of the impact of the fiscal policy on the growth of Vietnam at the provincial level. A fiscal policy plays a huge role in a national economy. Policy-makers often use flexible fiscal and monetary policies to achieve the overall goal of economic growth. In order to assess the impact of the fiscal policy instruments on economic growth, integrated analyses combined with quantitative analyses are used in the paper so as to find the relationship between the key expenditure items. The government has an impact on economic growth. The results and methodology will elicit quantitative approaches in policy reviews.

Keywords: fiscal policy, fiscal decentralization, tax, expenditure, growth

JEL Classification: H30, H70, H20