IDEAS home Printed from https://ideas.repec.org/a/bjw/econen/v15y2025i5p85-100.html

The impact of energy consumption, foreign direct investment, and education on human well-being: Evidence from the Vietnamese economy

Author

Listed:
  • Hai Bac Dang

    (University of Natural Resources and Environment, Ho Chi Minh City, Vietnam)

Abstract

This paper examines the impact of energy consumption, Foreign Direct Investment (FDI), and education on human well-being in Vietnam. To realize the aim of this research, a human well-being model was established using the Autoregressive Distributed Lag (ARDL) method to evaluate and study focused on the period 1990 - 2020. The results reveal evidence of the long-run positive relationships between human well-being, foreign direct investment, education, and urbanization. In addition, urbanization increases human well-being in the short run. Conversely, foreign direct investment and education reduce human well-being in the short run. Although energy consumption is expected to impact human well-being, the study found no evidence to suggest that energy consumption significantly impacts human well-being in the short and long run. Besides, the results of this study may be of great importance for policymakers and decision-makers in developing policies that attract foreign direct investment capital, education, and urbanization and contribute to the improvement of human well-being in Vietnam.

Suggested Citation

  • Hai Bac Dang, 2025. "The impact of energy consumption, foreign direct investment, and education on human well-being: Evidence from the Vietnamese economy," HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE - ECONOMICS AND BUSINESS ADMINISTRATION, HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE, HO CHI MINH CITY OPEN UNIVERSITY, vol. 15(5), pages 85-100.
    • Handle: RePEc:bjw:econen:v:15:y:2025:i:5:p:85-100
    DOI: 10.46223/HCMCOUJS.econ.en.15.5.3440.2025
    as

    Download full text from publisher

    File URL: https://journalofscience.ou.edu.vn/index.php/econ-en/article/view/3440/2300
    Download Restriction: no
    File URL: https://libkey.io/10.46223/HCMCOUJS.econ.en.15.5.3440.2025?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Sander, William, 2011. "Location and happiness in the United States," Economics Letters, Elsevier, vol. 112(3), pages 277-279, September.
    2. Jarita Duasa, 2007. "Determinants of Malaysian Trade Balance: An ARDL Bound Testing Approach," Global Economic Review, Taylor & Francis Journals, vol. 36(1), pages 89-102.
    3. Felix Requena, 2016. "Rural–Urban Living and Level of Economic Development as Factors in Subjective Well-Being," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 128(2), pages 693-708, September.
    4. Rashid Latief & Lin Lefen, 2019. "Foreign Direct Investment in the Power and Energy Sector, Energy Consumption, and Economic Growth: Empirical Evidence from Pakistan," Sustainability, MDPI, vol. 11(1), pages 1-21, January.
    5. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    6. Easterlin, Richard A. & Angelescu, Laura & Zweig, Jacqueline S., 2011. "The Impact of Modern Economic Growth on Urban–Rural Differences in Subjective Well-Being," World Development, Elsevier, vol. 39(12), pages 2187-2198.
    7. Kristjanpoller R., Werner & Sierra C., Alejandro & Scavia D., Javier, 2018. "Dynamic co-movements between energy consumption and economic growth. A panel data and wavelet perspective," Energy Economics, Elsevier, vol. 72(C), pages 640-649.
    8. Narayan, Paresh Kumar & Smyth, Russell, 2008. "Energy consumption and real GDP in G7 countries: New evidence from panel cointegration with structural breaks," Energy Economics, Elsevier, vol. 30(5), pages 2331-2341, September.
    9. Yakovlev, Pavel & Leguizamon, Susane, 2012. "Ignorance is not bliss: On the role of education in subjective well-being," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(6), pages 806-815.
    10. Dolan, Paul & Metcalfe, Robert, 2012. "The relationship between innovation and subjective wellbeing," Research Policy, Elsevier, vol. 41(8), pages 1489-1498.
    11. Edsel Beja, 2014. "Income growth and happiness: reassessment of the Easterlin Paradox," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 61(4), pages 329-346, December.
    12. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    13. Clark, Andrew E & Oswald, Andrew J, 1994. "Unhappiness and Unemployment," Economic Journal, Royal Economic Society, vol. 104(424), pages 648-659, May.
    14. Chia-Nan Wang & Anh Phuong Le, 2019. "Application of Multi-Criteria Decision-Making Model and GM (1,1) Theory for Evaluating Efficiency of FDI on Economic Growth: A Case Study in Developing Countries," Sustainability, MDPI, vol. 11(8), pages 1-29, April.
    15. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    16. Sabyasachi Tripathi, 2021. "How does urbanization affect the human development index? A cross-country analysis," Asia-Pacific Journal of Regional Science, Springer, vol. 5(3), pages 1053-1080, October.
    17. Easterlin, Richard A., 1974. "Does Economic Growth Improve the Human Lot? Some Empirical Evidence," MPRA Paper 111773, University Library of Munich, Germany.
    18. Bruno Arpino & Valeria Bordone & Nicoletta Balbo, 2018. "Grandparenting, education and subjective well-being of older Europeans," European Journal of Ageing, Springer, vol. 15(3), pages 251-263, September.
    19. Hichem Dkhili & Lassad Ben Dhiab, 2018. "The Relationship between Economic Freedom and FDI versus Economic Growth: Evidence from the GCC Countries," JRFM, MDPI, vol. 11(4), pages 1-17, November.
    20. Smyth, Russell & Mishra, Vinod & Qian, Xiaolei, 2008. "The Environment and Well-Being in Urban China," Ecological Economics, Elsevier, vol. 68(1-2), pages 547-555, December.
    21. Juncal Cuñado & Fernando Gracia, 2012. "Does Education Affect Happiness? Evidence for Spain," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 108(1), pages 185-196, August.
    22. Pandej Chintrakarn & Dierk Herzer & Peter Nunnenkamp, 2012. "Fdi And Income Inequality: Evidence From A Panel Of U.S. States," Economic Inquiry, Western Economic Association International, vol. 50(3), pages 788-801, July.
    23. Paresh Kumar Narayan, 2005. "The saving and investment nexus for China: evidence from cointegration tests," Applied Economics, Taylor & Francis Journals, vol. 37(17), pages 1979-1990.
    24. Bouzarovski, Stefan & Petrova, Saska & Sarlamanov, Robert, 2012. "Energy poverty policies in the EU: A critical perspective," Energy Policy, Elsevier, vol. 49(C), pages 76-82.
    25. Pachauri, S. & Mueller, A. & Kemmler, A. & Spreng, D., 2004. "On Measuring Energy Poverty in Indian Households," World Development, Elsevier, vol. 32(12), pages 2083-2104, December.
    26. Michael Hagerty & Ruut Veenhoven, 2003. "Wealth and Happiness Revisited – Growing National Income Does Go with Greater Happiness," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 64(1), pages 1-27, October.
    27. K. J. Arrow, 1971. "The Economic Implications of Learning by Doing," Palgrave Macmillan Books, in: F. H. Hahn (ed.), Readings in the Theory of Growth, chapter 11, pages 131-149, Palgrave Macmillan.
    28. Zhang, Dayong & Li, Jiajia & Han, Phoumin, 2019. "A multidimensional measure of energy poverty in China and its impacts on health: An empirical study based on the China family panel studies," Energy Policy, Elsevier, vol. 131(C), pages 72-81.
    29. Bui, Anh Tuan & Nguyen, Cuong Viet & Pham, Thu Phuong, 2019. "Impact of foreign investment on household welfare: Evidence from Vietnam," Journal of Asian Economics, Elsevier, vol. 64(C), pages 1-1.
    30. Anisa Shamim & Pervaiz Azeem & Syed M. Muddassir Abbas Naqvi, 2014. "Impact of Foreign Direct Investment on Poverty Reduction in Pakistan," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(10), pages 465-490, October.
    31. Easterly, William-R, 2004. "Globalization, Inequality, and Development: The Big Picture," Monetary and Economic Studies, Institute for Monetary and Economic Studies, Bank of Japan, vol. 22(S1), pages 57-87, December.
    32. Feenstra, Robert C. & Hanson, Gordon H., 1997. "Foreign direct investment and relative wages: Evidence from Mexico's maquiladoras," Journal of International Economics, Elsevier, vol. 42(3-4), pages 371-393, May.
    33. Zaman, Khalid & Khan, Muhammad Mushtaq & Ahmad, Mehboob, 2012. "The relationship between foreign direct investment and pro-poor growth policies in Pakistan: The new interface," Economic Modelling, Elsevier, vol. 29(4), pages 1220-1227.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Donghwan Kim, 2018. "Cross-National Pattern of Happiness: Do Higher Education and Less Urbanization Degrade Happiness?," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 13(1), pages 21-35, March.
    2. Verónica Cañal-Fernández & Julio Tascón Fernández, 2018. "The long run impact of foreign direct investment, exports, imports and GDP: evidence for Spain from an ARDL approach," Working Papers 0128, European Historical Economics Society (EHES).
    3. Magombeyi, Mercy Tsitsi & Odhiambo, Nicholas Mbaya, 2017. "Dynamic impact of FDI inflows on poverty reduction:Empirical evidence from South Africa," Working Papers 22006, University of South Africa, Department of Economics.
    4. Mohammad Imdadul Haque, 2019. "Growth Accounting for Saudi Arabia," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 9(6), pages 691-701, June.
    5. Dakpogan, Arnaud & Smit, Eon, 2018. "The effect of electricity losses on GDP in Benin," MPRA Paper 89545, University Library of Munich, Germany.
    6. Frank Gyimah Sackey & Emmanuel Orkoh & Mohammed Musah, 2024. "Investigating the impact of institutional quality under the petroleum price deregulation policy regime on the economic growth of Ghana," SN Business & Economics, Springer, vol. 4(11), pages 1-21, November.
    7. Kumar, Ronald Ravinesh & Kumar, Radika Devi & Patel, Arvind, 2015. "Accounting for telecommunications contribution to economic growth: A study of Small Pacific Island States," Telecommunications Policy, Elsevier, vol. 39(3), pages 284-295.
    8. Innocent .U. Duru & Bartholomew .O.N. Okafor & Millicent Adanne Eze & Gabriel .O. Ebenyi, 2020. "Foreign Aid and Economic Growth: Empirical Evidence from Nigeria," Growth, Asian Online Journal Publishing Group, vol. 7(1), pages 35-50.
    9. Antonella Ferrara & Rosanna Nisticò, 2015. "Regional well-being indicators and dispersion from a multidimensional perspective: evidence from Italy," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 55(2), pages 373-420, December.
    10. Rosemary Stanley Taylor, 2020. "Foreign direct investment and economic growth. Analysis of sectoral foreign direct investment in Tanzania," African Development Review, African Development Bank, vol. 32(4), pages 699-717, December.
    11. Can Tansel TUGCU, 2013. "Disaggregate Energy Consumption and Total Factor Productivity: A Cointegration and Causality Analysis for the Turkish Economy," International Journal of Energy Economics and Policy, Econjournals, vol. 3(3), pages 307-314.
    12. Muhammad Umair & Waqar Ahmad & Babar Hussain & Valentin Marian Antohi & Costinela Fortea & Monica Laura Zlati, 2024. "The Role of Labor Force, Physical Capital, and Energy Consumption in Shaping Agricultural and Industrial Output in Pakistan," Sustainability, MDPI, vol. 16(17), pages 1-26, August.
    13. Tugcu, Can Tansel & Ozturk, Ilhan & Aslan, Alper, 2012. "Renewable and non-renewable energy consumption and economic growth relationship revisited: Evidence from G7 countries," Energy Economics, Elsevier, vol. 34(6), pages 1942-1950.
    14. Md Shahiduzzaman & Allan Layton & Khorshed Alam, 2015. "On the contribution of information and communication technology to productivity growth in Australia," Economic Change and Restructuring, Springer, vol. 48(3), pages 281-304, November.
    15. Meltem Ucal & Alfred Albert Haug & Mehmet Hüseyin Bilgin, 2016. "Income inequality and FDI: evidence with Turkish data," Applied Economics, Taylor & Francis Journals, vol. 48(11), pages 1030-1045, March.
    16. M. T. Magombeyi & N. M. Odhiambo, 2018. "FDI inflows and poverty reduction in Botswana: an empirical investigation," Cogent Economics & Finance, Taylor & Francis Journals, vol. 6(1), pages 1480302-148, January.
    17. M. T. Magombeyi & N. M. Odhiambo, 2017. "Does Foreign Direct Investment Reduce Poverty? Empirical Evidence From Tanzania," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 67(2), pages 101-116, April-Jun.
    18. Ronald Kumar & Nanthakumar Loganathan & Arvind Patel & Radika Kumar, 2015. "Nexus between tourism earnings and economic growth: a study of Malaysia," Quality & Quantity: International Journal of Methodology, Springer, vol. 49(3), pages 1101-1120, May.
    19. Md. Saiful Islam & Saleh Saud Alsaif & Talal Alsaif, 2022. "Trade Openness, Government Consumption, and Economic Growth Nexus in Saudi Arabia: ARDL Cointegration Approach," SAGE Open, , vol. 12(2), pages 21582440221, May.
    20. Maguire, Karen & Winters, John V., 2016. "Energy Boom and Gloom? Local Effects of Oil and Natural Gas Drilling on Subjective Well-Being," IZA Discussion Papers 9811, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

    Statistics

    Access and download statistics

    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:bjw:econen:v:15:y:2025:i:5:p:85-100. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Vu Tuan Truong (email available below). General contact details of provider: https://journalofscience.ou.edu.vn/index.php/econ-en .

    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.