VGU RESEARCH REPOSITORY
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Title: | FDI and economic growth in Vietnam | Authors: | Cao Dang Nguyen | Keywords: | FDI;Economic growth;Vietnam | Issue Date: | 2017 | Publisher: | Vietnamese-German University | Abstract: | In the current age of globalization, the issue concerning the impact of crossborder foreign capital, particular inflow into emerging country is of importance to a growing economy like Vietnam. Despite experiencing significant transformation in economic and living standards in the past thirty years, Vietnam expects to require foreign funding in years to come. Furthermore, aside from positive impacts, Vietnam has also undergone certain drawbacks from the surge of FDI flowing into the country. Therefore, an investigation into drivers of economic growth in the case of Vietnam may shed light upon the circumstance and provide the government and regulators with necessary information to tackle such issue and challenge at hand as well as to regulate the benefit of FDI toward the economic condition of the host country. In this article, a regression analysis has been conducted using database consisting of implemented FDI inflows and GDP of Vietnam in the period between 1991 and 2015. The finding further highlights the statistically significant positive relationship between FDI and GDP in Vietnam during this time. To be more specific, regression analysis shows that for every percent of FDI as a percentage of GDP, GDP per capita in Vietnam grows an additional 0.19 percent at 95 significance level. Even for FDI as a share of aggregate investment, statistics show that every percent may relate to a further 0.08 percent increase in GDP per capita at 90 significance level. Thus, this study served as another evidence for the positive overall impact of FDI on economic growth in Vietnam particularly and in emerging country in general. |
URI(1): | http://epub.vgu.edu.vn/handle/dlibvgu/671 |
Appears in Collections: | Finance & Accounting (FA) |
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FDI and economic growth in Vietnam.pdf | 1.03 MB | Adobe PDF |
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