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Foreign direct investment and economic growth in Vietnam
Journal article   Peer reviewed

Foreign direct investment and economic growth in Vietnam

Sajid Anwar and L P Nguyen
Asia Pacific Business Review, Vol.16(1-2), pp.183-202
2010
url
https://doi.org/10.1080/10438590802511031View
Published Version

Abstract

economic growth foreign direct investment globalization Vietnam
By making use of a recently released panel dataset that covers 61 provinces of Vietnam from 1996-2005, this study examines the link between foreign direct investment and economic growth. Our analysis, which is based on a simultaneous equations model, reveals that in overall terms a mutually reinforcing two-way linkage between FDI and economic growth exists in Vietnam. However, this is not the case for each and every region of Vietnam. The results presented in this study suggest that the impact of foreign direct investment on economic growth in Vietnam will be larger if more resources are invested in education and training, financial market development and in reducing the technology gap between the foreign and local firms.

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