Article citationsMore >>

Chen, S. T. & Lee, C. C., “Government size and economic growth in Taiwan: A threshold regression approach”, Journal of Policy Modeling, 27(9). 1051-1066. 2005.

has been cited by the following article:

Article

Threshold Effect of State Budget Spending on Economic Growth: the Case of Vietnam

1Fundamental Faculty, Academy of Finance, Hanoi, Vietnam

2Institute of Economics and Finance, Academy of Finance, Hanoi, Vietnam


American Journal of Modeling and Optimization. 2020, Vol. 8 No. 1, 1-6
DOI: 10.12691/ajmo-8-1-1
Copyright © 2020 Science and Education Publishing

Cite this paper:
Nguyen Thu Thuy, Ta Van Thang. Threshold Effect of State Budget Spending on Economic Growth: the Case of Vietnam. American Journal of Modeling and Optimization. 2020; 8(1):1-6. doi: 10.12691/ajmo-8-1-1.

Correspondence to: Nguyen  Thu Thuy, Fundamental Faculty, Academy of Finance, Hanoi, Vietnam. Email: nguyenthuthuy@hvtc.edu.vn

Abstract

To the best of our knowledge, a very few studies have focused on the threshold effect of budget spending on economic growth in developing and developed countries. The purpose of this paper is to study the threshold effect of budget spending on economic growth in the Vietnam. Using a threshold analysis in the period over 1986-2018. The data were collected from Department of Statistics of Vietnam. Our results demonstrate that the optimal ratio of State budget expenditure to Vietnam's GDP is 24.67%. If this threshold is exceeded, the increase of the percentage ratio of State budget expenditure/GDP will have a negative impact on the speed of GDP growth.

Keywords