Contribution of resource factors in Vietnam’s economic growth during the period 1996-2016

Abstract

The paper analyzes the role of capital, labor and technological advancement in Vietnam's economic growth during the period 1996-2016 based on the Total Factor Productivity approach. By accounting method, the results show that capital is the biggest contributing factor to Vietnam’s economic growth. TFP is second largest contributor to the economic growth, despite its falling during the financial crisis 2008 and tends to be the largest contributor to Vietnam's economic growth in the coming years. Labor also plays a part in Vietnam's economic growth but it tends to decrease gradually.

Keywords: Total Factor Productivity, economic growth, technological advancement, resource factors.