Economic growth, fiscal policy and interest rate spread in Vietnam

Abstract

This paper recruits data from World development indicators report of Worldbank from 1997 to 2012 to investigate the
impacts of economic growth, fiscal policy on interest rate spread. Through correlation tests, Granger causality tests, we
find that fiscal policy has strong correlation and Granger causality with interest rate spread, in addition all variables
have Johansen cointergration in long-term. This research also find that fiscal policy has Granger causality with inflation
in Vietnam.