The Causal Relationship between Institutional Quality and Local Economic Growth: Cases of Research in the North of Vietnam

Abstract

The relationship between institutional quality and economic growth has long received the attention of economic researchers. Grasping this relationship is very important for the development of policies by the development goals of the national level in general and at the local level in particular in Vietnam. In this study, the authors find a causal relationship between institutional quality and local economic growth in the Northern provinces of Vietnam. By the Granger non-causality method in panel data, which was developed by Joudis et al. (2021), we provide an analysis of the positive two-dimensional causal relationship between institutional quality and local economic growth in North Vietnam in the period of 2011-2020.