The relationship between fiscal deficit and trade deficit in Vietnam over the period 1990 –2014

Abstract

The relationship between fiscal deficit and trade deficit has long been an interesting issue in many countries, especially in such a developing country like Vietnam. This paper examines the relationship between fiscal deficit and trade deficit in Vietnam over the period 1990–2014 by using secondary data of The Key Indicators for Asia and the Pacific of the Asian Development Bank. Based on the results of Cointegration and Error Correction Models (ECM), Vector Autoregressive Models (VAR) and Granger Causality Relationship, the study showed that there is a long-run causal relationship between the two deficits, but not in the short-run.

Keywords

• mối quan hệ
• thâm hụt
• tài khóa
• thương mại
• việt nam