THE IMPACT OF EXPENDITURES AND INVESTMENT ON ECONOMIC GROWTH IN VIETNAM
The article examines the long-term and short-term impacts of consumption expenditures and domestic investment on economic growth in Vietnam. The data used are time series from period of 1995 – 2022. The regression employs the Autoregressive Distributed Lag (ARDL) method. After conducting the boundary tests and error correction model, the variables in a long-term cointegration relationship were identified. Then, post-regression tests were performed to ensure the reliability of the regression results in the short and long term. The results reveal that government consumption expenditures has a positive impact only in the short term, but the rate of impact on growth is slower than that of household consumption spending and domestic investment. Meanwhile, household consumption and domestic investment have a positive impact on economic growth in both the short and long term.
ARDL, Investment, Expenditures, Economic, Growth.