Measuring the macroeconomic performance - the risk of lagging of Vietnamese economy

Abstract

    The study was targeted at measuring the macroeconomic performance of Vietnamese economy relativelyrelated to the other economies in the South East Asia region in the period 1996-2012. Themacroeconomic performance was measured by employing the FDH model upon 4 dimensions usedin developing Magic Diamond Index - economic growth, balance of trade, employment ratio, andprice stability - without assigning a fixed weight for each dimension. Instead of that, the authorsestimated the variable weights depending upon performance of each economy in each year. Theempirical results showed that the Vietnamese economy's performance was at lower level that itcould be and tended to diminish in 1996-2012 relatively related to other economies in the region.The risk of lagging was obvious, especially in comparing with the dominant economies. These findingssuggested that il ts time for crucial macroeconomic reforming policies to improve the macroeconomicperformance of Vietnamese economy rather than just minor adjustments in regulatingthe economy.