Year: 2025
Type: article
Abstract: ABSTRACT This paper has two primary objectives. First, it contributes to the literature on oil stabilisation funds and price controls by examining how such a fund is used to regulate market prices in the developing country of Vietnam. Second, it employs descriptive statistics and a standard GARCH methodology to investigate whether the fund, which operates as a form of price control, can effectively reduce domestic price volatility. The results show that the oil price stabilisation fund failed to achieve its intended goal. Considering the administrative costs and other negative impacts associated with the fund, a more market‐oriented approach, potentially combined with a price‐elastic tax system, is recommended for determining domestic oil prices.
DOI: 10.1002/app5.70036
Author: The Anh Pham
Institution: National Economics University
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: gold
Estimated APC paid: $1,810
OpenAlex ID: W4411434873