UNIVERSITY OF ECONOMICS ISS-INSTITUTE OF SOCIAL STUDIES HO CHI MINH CITY THE HAGUE VIETNAM THE NETHERLANDS VIETNAM-NETHERLANDS PROGRAMME FOR MASTER’S DEGREE IN DEVELOPMENT ECONOMICS THE DETERMINANTS OF ECONOMIC GROWTH: A CASE STUDY OF SIX SOUTHEAST ASIAN COUNTRIES SUPERVISOR : DR. NGUYỄN MINH ĐỨC PRESENTED BY : NGUYỄN KIỀU GIANG MDE-K16 HO CHI MINH CITY, DECEMBER 2012 ACKNOWLEDGMENT I’ve experienced the great time in this course with acquire academic knowledge, open-mind to approach new things, and be straightforward to express ideas. I’ve guided by open-mind lecturers who always encourage us to express our opinions and discuss it. This is really quality and extensive course.
We’re encouraged to be ourselves and be self-confident to discuss ideas, it’s really meaningful thing. Sincerely, I would like to take this opportunity to express my honest thanks to the Vietnam-Netherlands Master Program for Economics of Development for the interesting and extensive curriculum, as well as sincere thanks to all of people who engage in this course such as management board of this program, lecturers, tutors. To fulfill this course, I’ve received the help and support from many people such as director and vice director of this program, lecturers, tutors, my supervisor, classmates, friends, course administrators, librarians of MDE & Fulbright, and other people who give me the instructions, comments, advices, supports, sympathies, and encouragement during the course process. Without these things, I could not fulfill the Thesis and finish the course.
First of all, I would like to express my gratitude to my supervisor – Dr. Nguyen Minh Duc, who always remind me to finish the Thesis timely and make me determine to finish the Thesis with high effort, very patient and sympathy with me for delaying the time of submitting Thesis, spent his valuable time to help me, give comments and correct the Thesis mistake by mistake. From bottom of my heart, I sincerely thank him for all. I would like to express my special thank to Dr Nguyen Trong Hoai - Director of the Program, Vice Principal of UEH.
He fosters us to study and finish the course actively and efficiently, take care of us step by step. And special thanks to Dr Pham Khanh Nam steps with us to overcome obstacles in thesis process honestly, give us the valuable advices and encouragement to finish the thesis. i Thanks to TRD board defense give me valuable comments and advices to continue this topic. Thanks to Dr Phan Minh Ngoc supplies me materials at my TRD time.
Thanks to Dr Le Dinh Truc gives me valuable comments and advice on panel technique in Eview. And thanks to tutor Phung Thanh Binh for helping us honestly in the course. Thanks to all classmates in MDE-K16, all of you support me unconditionally with discussions, talks, shared materials, team working playing, and other. Thanks to friends Thu Huyen and Thanh Tien, your sharing materials are very useful for me.
Hope all of you fulfill this course and get success in your life. Lastly, I would like to thank to my dear family, warm friends that supports and sympathies with me for spending most time on studying this course. Thanks all for all, hope you will be happy and successful in life. I pledge to take full responsibilities for mistakes, errors, omissions and shortcomings of the study.
ii ABTRACT This study based on the neoclassical growth theory, an extended version of this model. As common trend, Cobb-Douglas production function is used to evaluate the robustness of determinants of economic growth in a dataset of six Southeast Asian countries from 1993 to 2009. The fixed effect model (FEM) is used to estimate this model. The results indicate that the most important source of economic growth of these countries is capital accumulation and labor.
Keywords: Economic growth, determinants, Capital, Labor, Population growth, Government expenditure, Southeast Asian countries, Neoclassical Model, Cobb- Douglas production function, FEM. iii TABLE OF CONTENT CHAPTER 1: INTRODUCTION .2 Research structure CHAPTER 2: RESEARCH OBJECTIVES & RESEARCH QUESTIONS .4 Research contribution CHAPTER 3: LITERATURE REVIEW .1 Concept and Definitions.2 Traditional methods of examine determinants of economic growth 13 3.3 Measurement indicator group of development and growth .4 Overview of economic development theory .1 Classify theories by time .