Combining Export- and Domestic Demand-Led Growth Hypotheses: Key Sustainable Development Amidst Global Dynamics

Abstract

Export-led growth has conventionally been regarded as a pivotal determinant of economic growth in developing countries. The article aims to affirm the vulnerability of Vietnam’s export sector due to its dependence on foreign direct investment flows and external market demand and evaluate the validity of the export-led growth strategy being applied in Vietnam among evolving global dynamics. The review of relevant literature explored the theoretical foundations, theories, and concepts of export-led and domestic demand-led growth with regard to the causal link between exports and economic growth. Qualitative and secondary research methods were used to analyze statistical data sets on imports and exports and domestic demand components to highlight their impact on the country’s GDP growth. The results showed that it is necessary to embrace both export-led growth and domestic demand-led growth as concurrent development paradigms, thereby ensuring the sustainability of Vietnam’s economic growth. Doi: 10.28991/HIJ-2024-05-02-05 Full Text: PDF

Keywords

• economic growth
• export-led growth
• domestic demand-led growth
• global dynamics
• sustainable development
• innovations
• vietnam.