Abstract: This paper examines the impact of education on sustainable development—including productivity growth and reforestation—with a focus on the case of Vietnam.  We employ the Vector Autoregressive model for panel data (Panel VAR) to examine any possible two-way causality between a pair of variables.  The results suggest that education plays a more significant role on productivity in Vietnam compared to other countries in Asia. However, oweverforest growth in Vietnam is slightly lower than in other Asian countries. Regarding reverse causality, we find that the effect of productivity growth on education is also lower in Vietnam than in different Asian countries. The reverse causality of forest growth on education is statistically insignificant for both groups.

Keywords: Education, productivity growth, Asian countries, Vietnam.