Solow model with technological progress: An empirical study of economic growth in Vietnam through ARDL approach

Abstract

This study aims to clarify the relationship between technological progress and economic growth in Vietnam. This investigation used annual data from the World Bank related to Vietnam from 1985 to 2019 and applied the approach of autoregressive distributed lag to evaluate the impact of technological progress on economic growth in Vietnam in the short and long term. The regression equation constructed in this investigation came from the analysis of the Cobb-Doulag equation and the Solow model. The results of the study showed that GDP per capita is affected by the variables of technological progress in the short and long term, which means that technological progress affects economic growth in Vietnam. This study also contributes to the area of economic growth research in Vietnam with important evidence-based results on the impact of technological progress on GDP per capita, and the findings of this study have several implications for the understanding of the role of technological progress in economic development. The current study is still limited to small sample sizes and does not cover all indicators for analysis; however, it provides the foundation for future investigations with larger sample sizes, and other elements of technological progress are modified and applied in specific fields.