| Abstrakt: |
To the best of our knowledge, the impact of the exchange rate on public debt has not been widely studied in developing Asian economies. In this paper, we take a closer look at the role of exchange rate public debt management in Vietnam. For this purpose, we develop a simple econometric model which is then tested for the impact of the exchange rate on Vietnam's public debt. The results indicate that, besides the exchange rate, other macroeconomic factors, including the multilateral nominal exchange rate, the budget deficit and current account deficit, also exert an influence on Vietnam's public debt. From the empirical findings, this study draws unique policy implications for Vietnam to fortify its debt safety and sustainability. |
