Examining the Economic Impacts of Restricted Energy Supply Chain on the Vietnamese Economy with Structure Path Analysis

Authors

Chung Van Nguyen, Quang Binh University, VietnamFollow

Abstract

The paper examines the impact of the restricted energy supply chain on key business sectors of Vietnam’s economy during the COVID-19 period by using structure path analysis combined with constrained fixed price multiplier to examine energy price changes for key business sectors of the economy between 2019 and 2020. The result shows that the change in coal price will likely lead to a downward trend in the overall price of the production. In particular, when the government restricts 10% of the energy supplies chain, the travel services, transportation services, trade, and repair services sectors will have the strongest impact on the economy. Meanwhile, other key industries such as agriculture and construction were not significantly impacted by the restricted energy supply chain in 2020. The study also provides some important recommendations for the Vietnamese government to proactively seek energy under different scenarios of the energy supply chain. In consequence, policymakers will have appropriate policies for sustainable economic development, especially in the context of complicated COVID-19 adversely affecting the economies of many countries and territories all over the world.

Recommended Citation

Nguyen, Chung Van (2021) "Examining the Economic Impacts of Restricted Energy Supply Chain on the Vietnamese Economy with Structure Path Analysis," Asia-Pacific Social Science Review: Vol. 21: Iss. 4, Article 18.
Available at: https://animorepository.dlsu.edu.ph/apssr/vol21/iss4/18