Real Estate Price, and Government Budget on Economic Growth: the Case of Vietnam in the Context of Global Supply Value Chain

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ABSTRACT

In the context of global supply chain value, it has greatly contributed the trade volumes, government budget utility and promotion for economic growth. Vietnam has been as one of the fastest growing economies in Asian Pacific and the world with a robust 7 percent since economic reforms in 1986 till present. At the same time, the real estate market has been as an enabler of economic activity by improving housing demands and enhancing economic performance. In particular, the real estate market has also been opened up for foreigners since 2015, who can buy or invest on a property in the country. This paper focuses on exploring the dynamic relationship between real estate price, government budget and economic growth in the case of an emerging economy. Using a quarterly data covering in the period of Q1/2008 to Q4/2018 with approximately 44 observations and applying Autoregressive Distribution Lagged (ARDL) approach, results reveal that, in both short run and long run, economic growth is highly affected by fluctuations of present, and past economic growth. In addition, there exists a long run relationship between government budget and economic growth. Regarding real estate price and its impact on economic growth, this study could not find any findings in this relationship in the both short and long run. The recommendations indicate that the trends of global supply value chains can strongly support for economic growth in the long run.

KEYWORDS

ARDL model, real estate price, budget, Unit root tests

Cite this paper

Nguyen Ho Phi Ha. (2021) Real Estate Price, and Government Budget on Economic Growth: the Case of Vietnam in the Context of Global Supply Value Chain. International Journal of Economics and Management Systems, 6, 126-138