The nexus of financial liberalisation and economic growth: is Vietnam different

This paper explores the relationship of economic growth and financial liberalisation in Vietnam, an emerging economy with remarkable changes since 2000. By drawing the quarterly dataset over the 20-year period starting from 2000 and the vector error-correction model estimation, our findings support the causal relationship among the set of macroeconomics determinants, such as credit rate, money supply as well as exchange rate. After controlling rigours determinants, we found that these two factors exhibit the causality in short-term and long-term. From this starting point, the relevant policy implications are drawn to highlight the process of liberalising the financial system as well as the list of non-conforming reservation measures (NCM) during the proposed negotiation process.