The impact of investment in the manufacturing and processing industry on economic growth in Vietnam

Nguyen The Khang

doi:10.24294/jipd9371

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The impact of investment in the manufacturing and processing industry on economic growth in Vietnam

Nguyen The Khang

Journal of Infrastructure Policy and Development 2024, 8(15); https://doi.org/10.24294/jipd9371

Submitted：28 Sept 2024

Accepted：22 Nov 2024

Published：12 Dec 2024

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Abstract

This study considers the relationship between investment in the manufacturing and processing industries and economic growth in Vietnam. This study applies an autoregressive distributed lag (ARDL) model to reassess the long- and short-term relationships between industrial investment and economic growth from 1998 to 2023. It has been found that in both the long and short term, investments in this sector have a positive and significant effect on economic growth. The results further show that labor negatively affects growth in the long run, but is favorable in the short run. The verdict for the role of exports is that more evidence is required before any conclusive analysis can be conducted. Reinvestment in the manufacturing and processing industries for further economic growth is evident in the foregoing analysis. On the other hand, this research provides insight into the optimization of the utilization of resources and future sustainability by the government.

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References

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