The Relationship of Fiscal Policy and Economic Cycle: Is Vietnam Different?

Fiscal policy is one of the most crucial areas government economic policy, and it has potential to influence growth any nation. According traditional Keynesian Ricardian theories, fiscal should not be pro-cyclical, counter-cyclical effective alternative. Furthermore, periodicity also heavily influenced by quality political institutions democracies. Thus, this paper examines relationship between cycle in Vietnam, a developing economy with dramatic change since 2000. The results support causal set factors, such as public debt, tax revenues, expenditures, analyzing quarterly data over twenty-year period beginning 2000 using Vector Error-Correction Model (VECM). Therefore, adaptation phases deployment tools help sustainability finances stimulate growth.