| dc.description.abstract | The stock market has been associated with economic development along with its responsibility to supply additional funds. While the stock market is built on the basis of economic growth, the stock market helps productivity expansion by channeling funds more effectively and providing liquidity to the economy. The goal of this research is to determine whether or not the stock market's performance correlates significantly with the growth of the Vietnamese economy. To do so, the author will make use of quarterly data series on real GDP portraying economic growth, market index measuring stock market performance, and control variables including inflation, trade balance, and foreign direct investment for the period of 2010:01 to 2021:04, with the data coming from annual statistics compiled by the General Statistics Office (GSO) and the Ho Chi Minh City Stock Exchange (HOSE). The Granger Causality Test is used in the Vector Autoregressive Model (VAR) in order to evaluate the connection that exists between the expansion of the stock market and the development of the national economy.
The findings of the research indicate that in Vietnam, the performance of the stock market and our economy are both affected by and contribute to each other in a reciprocal and two-way causal connection. The conclusion that can be drawn from the findings of the thesis is that the stock market in Vietnam needs to be acknowledged as a significant indicator of financial development. When the government intends to implement any kind of economic policy, the stock market, since it acts as a stimulus for economic development, should thus be examined with the proper attention. | en_US |
