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The Relationship between Foreign Direct Investment, Electricity Consumption and Economic Growth in Vietnam

Author

Listed:
  • Pham Dinh Long

    (Faculty of Economics and Public Management-Ho Chi Minh City Open University, Vietnam,)

  • Bui Hoang Ngoc

    (Graduate School-Ho Chi Minh City Open University, Vietnam)

  • Duong Tien Ha My

    (Faculty of Business Administration-University of Labour and Social Affairs, Ho Chi Minh City Campus, Vietnam)

Abstract

One of the prerequisites for the successful implementation of national industrialization and modernization is the synchronous development of fundamental industries. Electricity is a key industry that determines the success of other industries. The main purpose of this paper is to investigate the causal relationship between electricity consumption, foreign direct investment and economic growth in Vietnam during the period 1990-2015, by using Toda-Yamamoto approach and autoregressive distributed lag (ARDL) approach. The empirical results show strong statistical evidence that electricity consumption and foreign direct investment have positive impacts on economic growth in Vietnam in both short term and long term.

Suggested Citation

  • Pham Dinh Long & Bui Hoang Ngoc & Duong Tien Ha My, 2018. "The Relationship between Foreign Direct Investment, Electricity Consumption and Economic Growth in Vietnam," International Journal of Energy Economics and Policy, Econjournals, vol. 8(3), pages 267-274.
    • Handle: RePEc:eco:journ2:2018-03-31
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    References listed on IDEAS

    as
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    5. repec:ipg:wpaper:2014-542 is not listed on IDEAS
    6. Ali Acaravci & Ilhan Ozturk, 2012. "Electricity Consumption and Economic Growth Nexus: A Multivariate Analysis for Turkey," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 14(31), pages 246-257, February.
    7. James Ang, 2009. "Foreign direct investment and its impact on the Thai economy: the role of financial development," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 33(3), pages 316-323, July.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Muhammad Shahbaz & Miroslav Mateev & Salah Abosedra & Muhammad Ali Nasir & Zhilun Jiao, 2021. "Determinants of FDI in France: Role of transport infrastructure, education, financial development and energy consumption," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(1), pages 1351-1374, January.
    2. Kassim, Fatima & Isik, Abdurrahman, 2020. "The link between energy consumption and economic growth: Evidence from transition economies (1985-2017)," MPRA Paper 101601, University Library of Munich, Germany.
    3. Michael McAleer & Ha Minh Nguyen & Ngoc Hoang Bui & Duc Hong Vo, 2019. "Energy Consumption and Economic Growth: Evidence from Vietnam," Journal of Reviews on Global Economics, Lifescience Global, vol. 8, pages 350-361.
    4. Nyiko Worship Hlongwane & Realeboga Mahapa & Tselane Confidence Nthebe, 2023. "The Nexus between Foreign Direct Investment and Electricity Consumption in South Africa," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 213-220, September.
    5. Yasin Ahmed Sulub & Zarinah Hamid & Mior Nasir Mior Nazri, 2020. "Renewable Energy Supply and Economic Growth in Malaysia: An Application of Bounds Testing and Causality Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 10(3), pages 255-264.
    6. Sherifatu O. Onayemi & Philip A. Olomola & Philip O. Alege & Oluwakemi O. Onayemi, 2020. "Foreign Direct Investment, Electricity Power Supply and Economic Growth in Nigeria," International Journal of Energy Economics and Policy, Econjournals, vol. 10(5), pages 243-247.
    7. Ngo Ngoc Minh, 2020. "Foreign Direct Investment and Carbon Dioxide Emissions: Evidence from Capital of Vietnam," International Journal of Energy Economics and Policy, Econjournals, vol. 10(3), pages 76-83.
    8. Destek, Mehmet Akif & Sinha, Avik & Özsoy, Ferda Nakıpoglu & Zafar, Muhammad Wasif, 2023. "Capital Flow and Environmental Quality at Crossroads: Designing a Sustainable Policy Framework for the Newly Industrialized Countries," MPRA Paper 117560, University Library of Munich, Germany.
    9. Desire Wade Atchike & Zhen-Yu Zhao & Geriletu Bao, 2020. "The Relationship between Electricity Consumption, Foreign Direct Investment and Economic Growth: Case of Benin," International Journal of Energy Economics and Policy, Econjournals, vol. 10(4), pages 507-515.

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    More about this item

    Keywords

    Foreign Direct Investment; Electricity Consumption; Economic Growth; Vietnam;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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