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.