Economic Policy Uncertainty and Vietnam’s Economic Growth:The Moderating Role of Institutional Quality
DOI:
https://doi.org/10.63783/dla.2026.001Keywords:
Economic Policy Uncertainty , GDP growth, Institutional quality, VietnamAbstract
This study analyzes the impact of economic policy uncertainty on Vietnam’s economic growth while examining the moderating role of two institutional quality indicators political stability and control of corruption. The dataset consists of macroeconomic variables collected from the World Bank and the international Economic Policy Uncertainty index for the period 2002 - 2023. The model is estimated using OLS with Robust and Newey-West standard error adjustments. The results show that economic policy uncertainty has a negative effect on Vietnam’s economic growth, as periods of policy instability are typically associated with lower growth. In contrast, political stability serves as a positive moderator, helping to mitigate the adverse impact of policy uncertainty. The interaction between economic policy uncertainty and control of corruption also indicates that stronger institutional transparency can help lessen the negative effects of policy uncertainty on Vietnam’s economic growth.
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