1Department of Public Finance, Academy of Finance, Hanoi, Vietnam
Journal of Finance and Economics.
2020,
Vol. 8 No. 2, 86-92
DOI: 10.12691/jfe-8-2-6
Copyright © 2020 Science and Education PublishingCite this paper: Nguyen Thanh Giang. The Role of Tariff in Promoting Economic Growth: A Case Study of Vietnam.
Journal of Finance and Economics. 2020; 8(2):86-92. doi: 10.12691/jfe-8-2-6.
Correspondence to: Nguyen Thanh Giang, Department of Public Finance, Academy of Finance, Hanoi, Vietnam. Email:
Corresponding author: Nguyenthanhgiang.aof@gmail.comAbstract
In theory, it was conforming to the accepted standard the open economies grow faster than the closed economies, and respectable economic development level could be achieved. Tariff is one of the key determinant to control the open of the economies. This paper investigates the dynamic impact of tariff on the economic growth in Vietnamese economy between 1999 and 2017 empirically. Secondary data were sourced, from the World Development Indicators, Department of Statistics in Vietnam. The tests of diagnostic conducted are: unit root test, co-integration test, autoregressive distributed lag model (ARDL) and Bound test. The analysis result revealed the tariff and economic growth are co-integrated and have a long-run equilibrium relationship. The tariff was found to have positively impacted on the economic growth in both the short run and long run. Based on study findings, it is recommended that the Vietnamese Government keep and improve the tariff thanks to the positive impact of tariff on economic growth.
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