Departmental Bulletin Paper Determinants of inward foreign direct investment in Vietnam

Trinh, Nam Hoai  ,  Nguyen, Quynh Anh Mai  ,  トゥリン, ナム ホアイ  ,  グエン, クイン アン マイ

6pp.51 - 71 , 2016-03-31 , 同志社大学グローバル・スタディーズ学会 , Transcription:ドウシシャ ダイガク グローバル・スタディーズ ガッカイ , Alternative:The Association of Global Studies, Doshisha University
This study aims to examine the determinants of inward FDI in Vietnam over the period 1990-2013 using time-series analysis techniques that address the problem of nonstationarity of data. Specifically, the Unit root test and Cointegration approach are applied to ensure that the regressions are not spurious. The empirical results reveal that gross domestic product (GDP) growth rate, trade openness, exchange rate, secondary education and external debt have positive effects on FDI inflows whereas inflation rate, telephone lines and government consumption are found to have negative impacts on FDI inflows. Moreover, the effects of GDP per capita and interest rate on inward FDI are statistically insignificant with unexpected signs. Ultimately, the paper suggests that synchronized efforts should focus on strengthening the capacity of economic growth, trade effectiveness, and labor skills in order to ensure stability in macroeconomic performance, which enhances the confidence of foreign investors in Vietnam.

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