The effect of FDI on Vietnam economic growth
The Impact of Foreign Direct
Investment on Economic Growth
Hanoi, 19 March, 2014
Contents
Abstract 2
I. Introduction 2
1. Vietnam Economic Growth: 3
1.1 Definition of "Economic Growth": 3
1.2 Indicators of Vietnam economic growth: 3
2. Foreign Direct Investment: 8
2.1. Definition and classification: 8
2.2. Factors affecting FDI flows: 8
2.3. FDI in Vietnam: 10
3. FDI and Economic Growth – The Two Linkages: 10
II. Literature review 12
III. The Empirical Model 12
3.1. Data 12
3.2. Econometric method: 12
IV/ Estimation Results: 13
4.1. Coefficient interpretation: 13
4.2. Hypothesis test: 13
V. Conclusion 14 Fully developed answers to these questions are beyond the scope of this paper. What our analysis does suggest, however, is that no investment, no economic growth. With the right national and global policy framework, FDI could Vietnam achieve the “miracle development”. 14
References 14
Abstract
This study examines the relationships between foreign direct investment and economic growth in Vietnam. From the available data, figures and using OLS method, we test the hypothesis with the data span for the study is from 1991 to 2012.
The result indicates that foreign capital (FDI) is statistically significant in 1991-2012 span, having positive effects on economic growth in Vietnam. The analysis also suggest that the FDI-led growth hypothesis is valid for Vietnamese economy
I. Introduction
There has been a debate and an ambiguous picture over the reason of economic miracle in Asian countries. FDI has been found to have positive, sometimes neutral, or even negative impacts. Some said foreign direct investment has not been a dominant factor in Japan’s success since it was financed to a very large degree out of domestic saving. While in Singapore and Indonesia, foreign investment is an apparent factor for the economic miracle.
It
Investment on Economic Growth
Hanoi, 19 March, 2014
Contents
Abstract 2
I. Introduction 2
1. Vietnam Economic Growth: 3
1.1 Definition of "Economic Growth": 3
1.2 Indicators of Vietnam economic growth: 3
2. Foreign Direct Investment: 8
2.1. Definition and classification: 8
2.2. Factors affecting FDI flows: 8
2.3. FDI in Vietnam: 10
3. FDI and Economic Growth – The Two Linkages: 10
II. Literature review 12
III. The Empirical Model 12
3.1. Data 12
3.2. Econometric method: 12
IV/ Estimation Results: 13
4.1. Coefficient interpretation: 13
4.2. Hypothesis test: 13
V. Conclusion 14 Fully developed answers to these questions are beyond the scope of this paper. What our analysis does suggest, however, is that no investment, no economic growth. With the right national and global policy framework, FDI could Vietnam achieve the “miracle development”. 14
References 14
Abstract
This study examines the relationships between foreign direct investment and economic growth in Vietnam. From the available data, figures and using OLS method, we test the hypothesis with the data span for the study is from 1991 to 2012.
The result indicates that foreign capital (FDI) is statistically significant in 1991-2012 span, having positive effects on economic growth in Vietnam. The analysis also suggest that the FDI-led growth hypothesis is valid for Vietnamese economy
I. Introduction
There has been a debate and an ambiguous picture over the reason of economic miracle in Asian countries. FDI has been found to have positive, sometimes neutral, or even negative impacts. Some said foreign direct investment has not been a dominant factor in Japan’s success since it was financed to a very large degree out of domestic saving. While in Singapore and Indonesia, foreign investment is an apparent factor for the economic miracle.
It
References: [1] S. Anwar and L. P. Nguyen, “Foreign Direct Investment and Economic Growth in Vietnam,” Research in Interna-tional Business and Finance, Vol. 25, No. 1, 2011, pp. 39-52. http: //www.elsevier.com/locate/ribaf [2] L [3] P. Srinivasan, M. Kalaivani and P. Ibrahim, “FDI and Eco-nomic Growth in the ASEAN Countries: Evidence from Cointegration Approach and Causality Test,” Journal of Management Research, Vol. 9, No. 1, 2010, pp. 38-63. K J. Y. Wu and C. C. Hsu, “Does Foreign Direct Investment Promote Economic Growth? Evidence from a Threshold Regression Analysis,” Economics Bulletin, Vol. 15, No. 12, 2008, pp. 1-10, Data, figures cited from