We use a detailed growth accounting method to estimate the annual growth rate of the aggregate Vietnamese capital stock over the period 1996-2005. Our results show that the rate was likely to have been in the vicinity of 7-8 % per annum. This is approximately 2 percentage points lower than estimates appearing in some previous studies. | Just how quickly has the Vietnamese capital stock grown over the past decade ECONOMIC RESEARCH Just how quickly has the Vietnamese capital stock grown over the past decade James A. Giesecke and Tran Hoang Nhi ABSTRACT We use a detailed growth accounting method to estimate the annual growth rate of the aggregate Vietnamese capital stock over the period 1996-2005. Our results show that the rate was likely to have been in the vicinity of 7-8 per annum. This is approximately 2 percentage points lower than estimates appearing in some previous studies. Key words Vietnamese capital growth rate growth accounting TFP growth. 1. Introduction A number of such studies have been undertaken for Vietnam Tran Tho Dat 2004 Tang Van Khien The Solow growth accounting equation equation 1 is often used to estimate 2005 Le Viet Anh 2006 . A difficulty with applying movements in total factor productivity TFP . 1 to the Vietnamese case is that to date the General Statistics Office GSO has not published gdpRFC S Ll S K k S N n a 1 estimates of k. Equation 1 thus presents the growth In such exercises official statistical data on accounting researcher with one equation but two a percentage rates of change in real GDP at unknowns. To solve this problem researchers studying factor cost gdpRFC employment l capital stocks k the Vietnamese case must supply their own k and land n and estimates. These estimates tend to be high - in the b shares of payments to labour SL vicinity of 10 per cent1. In this paper we argue that capital SK and land SN in GDP at factor cost are these estimates may be too high perhaps by as much used to calculate movements in TFP a . as 2-3 percentage points per annum. James A. Giesecke and Tran Hoang Nhi Centre of Policy Studies Monash University Australia. Volume 2 - Number 2 - 2008 Vietnam Economic management review 31 PDF created with pdfFactory trial version VEMR ECONOMIC RESEARCH Just how quickly has the Vietnamese capital stock grown over the .
