The Impact of Public Investment on Private Investment in Vietnam’s Central Key Economic Region and the Mekong Delta Key Economic Region: A PMG Approach

Authors

  • Ho Thi Hoai Thuong Department of Macroeconomics, Faculty of International Economics Foreign Trade University, Vietnam
  • Nguyen Thi Thanh Huyen Department of Macroeconomics, Faculty of International Economics Foreign Trade University, Vietnam

Keywords:

Central Key Economic Region (CKER), Mekong Delta Key Economic Region (MDKER), Key Economic Region (KER), public investment, private investment

Abstract

The purpose of this study is to find out the impact of public investment on private investment in the localities of the Mekong Delta Key Economic Region and the Central Key Economic Region. Using data on public investment (state sector’s investment) and private investment (non-state sector’s investment excluding FDI) in the period 2010-2021 with the PMG (Pool Mean Group) method, the research results show that in the long run, public investment creates a crowding-in effect on private investment in two Key Economic Regions. However, in the short term, public investment creates a crowding - out effect or does not affect private investment. Based on empirical research results, some relevant policy implications are suggested.

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Published

2024-09-05

How to Cite

Ho Thi Hoai Thuong, & Nguyen Thi Thanh Huyen. (2024). The Impact of Public Investment on Private Investment in Vietnam’s Central Key Economic Region and the Mekong Delta Key Economic Region: A PMG Approach. Thailand and The World Economy, 42(3), 18–33. Retrieved from https://so05.tci-thaijo.org/index.php/TER/article/view/263558