Perfecting Fiscal Decentralization to Increase Economic Growth in Vietnam

Abstract

The government intervention in the economy is practical and widely acknowledged. The central government expenditure, like budget incomes, is to regulate the national economy. According to Keynes (1936), the government should aim at demand-side stimuli to facilitate consumption and production. This paper identifies negative impacts of budget expenditure decentralization on Vietnam?s economic growth; and positive impacts of central government expenditure, private investments and trade openness on the economic growth as well. Additionally, no relationship between inflation rate along with changes in labor force and economic growth is found.http://jabes.ueh.edu.vn/Home/SearchArticle?article_Id=c401684f-993c-4f0a-8261-7cc1935635e3