The Long-run Effect of Bombing on Financial Decision Making in Vietnam

By Nguyen Luong Tam (VNP 27)

Supervisor: Dr. Huynh Luu Duc Toan

Abstract:

Little is known about how bombing impacts current financial decisions. This study investigates the long-term impact of bombing on seven different financial factors. Vietnam Household Living Standard Survey (VHLSS) was employed for empirical analysis with bombing data from the Vietnam-US war to construct a panel data of 27,358 observations. The Tobit model and the method of using Instrument Variables are main econometric approaches. Results suggest that bombing intensity decreases participation in stock markets of people, but there are positive relationships between bombing intensity and other financial factors but not all of them.