Overview

Original Research

THE RELATIONSHIP BETWEEN TRADE OPENNESS AND ECONOMIC GROWTH IN VIETNAM

NGUYEN THI VAN ANH 1, NGUYEN THI HOA TAM 2, HOANG THANH TUNG 3, DONG KIEN QUOC 4, and MAO KHANG LUAN 5.

Vol 19, No 06 ( 2024 )   |  DOI: 10.5281/zenodo.11655132   |   Author Affiliation: PhD, Lecturer, University of Labour and Social Affairs 1; University of Labour and Social Affairs – Campus II, 1018 To Ky, Tan Chanh Hiep St, 12 Dst, HoChiMinh City, Vietnam 2; PhD, Associate Professor, University of Labour and Social Affairs, 43 Tran Duy Hung St, Caugiay Dst, Hanoi, Vietnam 3; Student, International School Ho Chi Minh City (ISHCMC) 4; Student, Vinschool the Harmony 5.   |   Licensing: CC 4.0   |   Pg no: 370-382   |   Published on: 13-06-2024

Abstract

This article studies the relationship between trade openness (TO) and economic growth in Vietnam from 1991 to 2023. The authors examine the concept, role, and negative impacts of trade openness and the concept and cost-benefits of economic growth, providing an overview of the relationship between TO and economic growth. Data on the total import-export turnover and GDP (representing economic growth) from 1991-2023 were collected from GSO, International Financial Statistics, and WB to calculate the TO index. A regression model was constructed to illustrate the relationship between TO and GDP, showing that when the previous year's GDP fluctuated by 1%, the GDP in the considered year fluctuated by 0.327711%. Similarly, when the previous year's TO fluctuated by 1%, the GDP in the considered year fluctuated by 0.058527%. The results support the view that trade openness (TO) plays an important role in promoting economic growth (g) in Vietnam. Based on the findings, the authors offer several recommendations to boost exports, increase trade openness, and support economic growth.

Keywords

Trade Openness; Economic Growth; Vietnamese Economic; Export Value; Import Value.