The Impacts of Financial Development on Growth and Sources of Growth at the Vietnamese Provincial Level

Abstract

      This paper examines the role of financial development in growth and sources of growth in Vietnam by using provincial data. The results show that financial development impacts posi- tively on the efficiency of using savings, on the quantity and the quality of investment, on pro- ductivity, and hence on growth. In addition, there is an indirect impact of financial develop- ment on growth through increasing the quantity of foreign direct investment rather than the quality.