IDEAS home Printed from https://ideas.repec.org/a/asi/aeafrj/v9y2019i5p630-641id1825.html
   My bibliography  Save this article

Institutional Quality and Foreign Direct Investment Inflows: The Case of Vietnam

Author

Listed:
  • Cao Hong Minh

Abstract

This article examines the effect of institutional quality on Foreign Direct Investment (FDI) inflows in Vietnam, using a set of panel data from a Provincial Competitiveness Index (PCI) survey and inward FDI to 59 provinces and cities of Vietnam in the period of 2010-2017. This study also accounts for the fundamental determinants of FDI and gravity variables that are widely used in studies of FDI. In order to tackle the problem of endogeneity including reverse causality, a very classic problem facing almost the researches on determinants of FDI, this study applies Difference Generalize Method of Moments (GMM) estimation with period-specific predetermined instruments to investigate the relation between quality of provincial governance and FDI inflows. After controlling for factors other than institutional quality, the outcome shows that the provincial competitiveness index in terms of institutional quality is significant in explaining the difference in inward FDI from province to province in Vietnam.

Suggested Citation

  • Cao Hong Minh, 2019. "Institutional Quality and Foreign Direct Investment Inflows: The Case of Vietnam," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 9(5), pages 630-641.
    • Handle: RePEc:asi:aeafrj:v:9:y:2019:i:5:p:630-641:id:1825
    as

    Download full text from publisher

    File URL: https://archive.aessweb.com/index.php/5002/article/view/1825/2787
    Download Restriction: no
    File URL: https://archive.aessweb.com/index.php/5002/article/view/1825/4087
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kechagia, Polyxeni & Metaxas, Theodore, 2020. "Institutional quality and FDI inflows: an empirical investigation for Turkey," MPRA Paper 104309, University Library of Munich, Germany.
    2. Áron Török & Ákos Szerletics & Lili Jantyik, 2020. "Factors Influencing Competitiveness in the Global Beer Trade," Sustainability, MDPI, vol. 12(15), pages 1-15, July.
    3. Thi-Nham Le & Thanh-Tuan Dang, 2022. "An Integrated Approach for Evaluating the Efficiency of FDI Attractiveness: Evidence from Vietnamese Provincial Data from 2012 to 2022," Sustainability, MDPI, vol. 14(20), pages 1-25, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:asi:aeafrj:v:9:y:2019:i:5:p:630-641:id:1825. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Robert Allen (email available below). General contact details of provider: https://archive.aessweb.com/index.php/5002/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.