The macroeconomy and financial depth: Evidence from Vietnam

Toan Ngoc Bui, Faculty of Finance and Banking, Industrial University of Ho Chi Minh City (IUH), Ho Chi Minh City, Vietnam
2020 International Journal of Advanced and Applied Sciences  
The paper investigates the correlation between the macroeconomy and financial depth in Vietnam. Despite its attractiveness, this topic has not been commonly analyzed in much empirical research, especially those in developing countries. Consequently, its results are meaningful to Vietnam as well as developing countries. By employing the Autoregressive Distributed Lag (ARDL) approach to estimate the research model, the author confirms the bidirectional nexus between the macroeconomy (economic
more » ... onomy (economic growth and inflation) and financial depth which is measured by the size of the banking sector to the economy, a difference between Vietnam and other developing nations. The results are also essential for consideration by the authorities in managing macroeconomic policies for the sustainable development of the financial system.
doi:10.21833/ijaas.2020.04.002 fatcat:fahg6drmdvg6vcf6sqdthnreem