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Regional bombs and firm investment decisions: Evidence from the Vietnam War

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  • Luu, Thu Thanh
  • Pham, Duong Phuong Thao

Abstract

This study examines the impact of historical bomb density on the investment decisions of Vietnamese firms, particularly in infrastructure. Employing an instrumental variable approach, this study examines the causal relationship between bomb density and tangible asset investments. The findings indicate that bomb density significantly influences these investments, with infrastructure quality and literacy rates as mediating factors.

Suggested Citation

  • Luu, Thu Thanh & Pham, Duong Phuong Thao, 2024. "Regional bombs and firm investment decisions: Evidence from the Vietnam War," Economics Letters, Elsevier, vol. 244(C).
    • Handle: RePEc:eee:ecolet:v:244:y:2024:i:c:s0165176524004968
    DOI: 10.1016/j.econlet.2024.112012
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    Keywords

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    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies
    • P5 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations

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