ARDL Bounds Testing Approach to Cointegration: Relationship International Trade Policy Reform and Foreign Trade in Vietnam

Abstract

Starting from in 1986, Vietnam began economic reforms, from an economy centrally planned economy to market-oriented socialist where the government still playing a leading role. The breakthrough in policy reform has succeeded in creating faster economic growth and improving people’s living standards. Among the policy reforms since renovation, trade policy is the most important ones and has great impacts not only on Vietnam’s foreign trade activity but also the whole economy. This paper focuses on the evaluation of the impact of reforms in trade policy on Vietnam’s foreign trade, the achievements and the limitations still exist after implement the reform of trade policy. Also, together with the mention of the content and the process of trade policy reform in Vietnam. Finally, it proposes some suggestions to improve Vietnam’s trade policy.