TRADE OPENNESS, INSTITUTIONAL QUALITY, AND THEIR JOINT INFLUENCE ON ECONOMIC GROWTH IN THE SOUTH CENTRAL COASTAL REGION: A BAYESIAN REGRESSION APPROACH
DOI:
https://doi.org/10.18623/rvd.v22.n5.3870Palabras clave:
Economic Growth, Trade Openness, Institutional QualityResumen
Promoting economic growth has always been a key focus of macroeconomic management policies at both national and local levels. Numerous studies have emphasized the role of institutions and trade openness in economic growth. This study examines the impact of trade openness, institutional quality, and their interaction on economic growth in the South Central Coastal region of Vietnam, covering eight provinces: Khanh Hoa, Ninh Thuan, Binh Thuan, Da Nang, Quang Nam, Quang Ngai, Binh Dinh, and Phu Yen, over the period 2010–2021. Using Bayesian regression analysis, the results indicate that trade openness and institutional quality positively influence economic growth, with posterior probabilities of 94.85% and 93.86%, respectively. Similarly, their interaction also exerts a positive effect on economic growth, with an almost absolute probability of 99.63%. These findings suggest that the impact of trade openness on economic growth is more effective when considered within a high-quality institutional environment. Based on these results, we propose relevant policy implications for the region.
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