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Foreign direct investment and economic growth in Vietnam


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  • Sajid Anwar
  • Lan Phi Nguyen


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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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Asia Pacific Business Review.

Volume (Year): 16 (2010)
Issue (Month): 1-2 (April)
Pages: 183-202

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Handle: RePEc:taf:apbizr:v:16:y:2010:i:1-2:p:183-202

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Cited by:
  1. Anwar, Sajid & Nguyen, Lan Phi, 2011. "Foreign direct investment and trade: The case of Vietnam," Research in International Business and Finance, Elsevier, Elsevier, vol. 25(1), pages 39-52, January.
  2. Omri, Anis & Kahouli, Bassem, 2014. "Causal relationships between energy consumption, foreign direct investment and economic growth: Fresh evidence from dynamic simultaneous-equations models," Energy Policy, Elsevier, Elsevier, vol. 67(C), pages 913-922.
  3. Anwar, Sajid & Nguyen, Lan Phi, 2011. "Foreign direct investment and export spillovers: Evidence from Vietnam," International Business Review, Elsevier, Elsevier, vol. 20(2), pages 177-193, April.
  4. Anis Omri & Amel Sassi-Tmar, 2014. "Linking FDI inflows to economic growth in North African countries," Working Papers, Department of Research, Ipag Business School 2014-558, Department of Research, Ipag Business School.
  5. Bassem Kahouli & Anis Omri & Anissa Chaibi, 2014. "Environmental Regulations, Trade, and Foreign Direct Investment: Evidence from Gravity Equations," Working Papers, Department of Research, Ipag Business School 2014-189, Department of Research, Ipag Business School.
  6. Anwar, Sajid & Nguyen, Lan Phi, 2014. "Is foreign direct investment productive? A case study of the regions of Vietnam," Journal of Business Research, Elsevier, Elsevier, vol. 67(7), pages 1376-1387.
  7. Anis Omri & Duc Khuong Nguyen & Christophe Rault, 2014. "Causal interactions between CO2 emissions, FDI, and economic growth: Evidence from dynamic simultaneousequation models," Working Papers, Department of Research, Ipag Business School 2014-542, Department of Research, Ipag Business School.
  8. Li, Yarui & Woodard, Joshua D. & Leatham, David J., 2013. "Causality among Foreign Direct Investment and Economic Growth: A Directed Acyclic Graph Approach," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, Southern Agricultural Economics Association, vol. 45(04), November.
  9. Anis Omri & Bassem kahouli, 2014. "The nexus between foreign investment, domestic capital and economic growth: Empirical evidence from the MENA region," Working Papers, Department of Research, Ipag Business School 2014-557, Department of Research, Ipag Business School.
  10. Farshid Pourshahabi & Ehsan Salimi Soderjani & Davood Mahmoudinia, 2013. "Panel Causality Relationship among FDI and Trade (Evidence from 16 Advanced Europe Countries)," Iranian Economic Review, Economics faculty of Tehran university, Economics faculty of Tehran university, vol. 18(1), pages 115-133, winter.


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