The Relationship between Foreign Direct Investment and Local Economic Growth: A Case Study of Binh Dinh Province, Vietnam

Thạc sĩNguyễn Duy ThụcLe BaoNgo Thi Thanh ThuyNguyen Ngoc Tien

Khoa Khoa Học Cơ Bản

Thể loại: Bài báo

Sơ lược nội dung

This study aims to investigate the relationship between foreign direct investment (FDI) and economic growth at the provincial level by using time-series data in Binh Dinh from 1997 to 2019. We applied the quantitative approaches Vector Autoregression (VAR) and Autoregressive Distributed Lags (ARDL) in the model, which includes economic growth, real foreign direct investment capital, ratio of trained workers, and infrastructure. The results show that all these variables are stationary at the first difference. In ARDL analysis, we found that the economic growth positively affects FDI attraction. However, there is no evidence of the effect of FDI on economic growth in the condition of low capital implemented. Moreover, findings also show that the impact of FDI on economic growth is influenced by two factors: infrastructure and human capital. The lack of human capital, which is trained personnel and infrastructure, is the main barrier hindering and inhibiting FDI's contribution to local economic growth. In order to improve the efficiency of FDI on economic growth in the future, it is suggested that the Binh Dinh government should have proper policies in terms of the infrastructure, the human capital investment. They would allow Binh Dinh to enhance the capital absorptive capacity and capital efficiency.

Thông tin chung
Thể loại
Bài báo
Năm xuất bản
30 Thg4 2021
Ngôn ngữ gốc
Tiếng Anh
Tạp chí công bố
The Journal of Asian Finance, Economics and Business
Ấn phẩm số
Vol. 8 Issue 4
Loại tạp chí
Danh mục ISI/Scopus
2288-4637 / 2288-4645
Chất lượng

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