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Spatial Impact of Foreign Direct Investment on Poverty Reduction in Vietnam

Author

Listed:
  • Quynh Anh Do

    (Faculty of Economics, National Economics University, Hanoi 10000, Vietnam)

  • Quoc Hoi Le

    (Faculty of Economics, National Economics University, Hanoi 10000, Vietnam)

  • Thanh Duong Nguyen

    (School of Banking and Finance, National Economics University, Hanoi 10000, Vietnam)

  • Van Anh Vu

    (Faculty of Economics, National Economics University, Hanoi 10000, Vietnam)

  • Lan Huong Tran

    (Faculty of Economics, National Economics University, Hanoi 10000, Vietnam)

  • Cuc Thi Thu Nguyen

    (Faculty of Economics, Vinh University, Vinh 43000, Vietnam)

Abstract

In this study, we analyze the spatial effect of foreign direct investment (FDI) on poverty reduction in Vietnam. This study uses the provincial-level panel data and the fixed-effects regression and the spatial econometric model to investigate empirically the impact of FDI on poverty reduction in Vietnam. The study finds that FDI has contributed to poverty reduction not only directly but also indirectly through human capital. However, FDI has indirectly worsened poverty through international trade. In addition, empirical results from the spatial econometric model show that FDI tends to decrease poverty in provinces. Finally, the study has some policy implications to decrease the negative effects of FDI on poverty reduction in Vietnam.

Suggested Citation

  • Quynh Anh Do & Quoc Hoi Le & Thanh Duong Nguyen & Van Anh Vu & Lan Huong Tran & Cuc Thi Thu Nguyen, 2021. "Spatial Impact of Foreign Direct Investment on Poverty Reduction in Vietnam," JRFM, MDPI, vol. 14(7), pages 1-16, June.
    • Handle: RePEc:gam:jjrfmx:v:14:y:2021:i:7:p:292-:d:582007
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    3. MT Musakwa, 2023. "Does Foreign Direct Investment Influence Poverty In Zimbabwe? A Multivariate Approach," Working Papers AESRI-2023-26, African Economic and Social Research Institute (AESRI), revised Aug 2023.
    4. Dwumfour, Richard Adjei & Pan, Lei & Harris, Mark N., 2023. "FDI and development redux: Is R&D a substitute for FDIs?," MPRA Paper 116117, University Library of Munich, Germany.
    5. Arvian Triantoro & Muhammad Zaheer Akhtar & Shiraz Khan & Khalid Zaman & Haroon ur Rashid Khan & Abdul Wahab Pathath & Muhamad Amar Mahmad & Kamil Sertoglu, 2023. "Riding the Waves of Fluctuating Oil Prices: Decoding the Impact on Economic Growth," International Journal of Energy Economics and Policy, Econjournals, vol. 13(2), pages 34-50, March.
    6. Sodiq Arogundade & Mduduzi Biyase & Santos Bila, 2022. "Be Nice to Thy Neighbors: Spatial Impact of Foreign Direct Investment on Poverty in Africa," Economies, MDPI, vol. 10(6), pages 1-20, June.
    7. Osama D. Sweidan, 2023. "The Effect of Geopolitical Risk on Income Inequality: Evidence from a Panel Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 167(1), pages 47-66, June.
    8. Musakwa, Mercy T, 2022. "Does foreign direct investment influence poverty in Zimbabwe? A multivariate approach," Working Papers 29798, University of South Africa, Department of Economics.

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