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The Impacts of Trade Openness on Industrial Performance at Regional and Provincial Level in Vietnam

Author

Listed:
  • Le, Huong

    (University of Alberta, Canada)

  • Bui, Ly

    (Foreign Trade University, Vietnam)

Abstract

This paper aims to investigate the impacts of external liberalization on Vietnamese industrial performance at both regional and provincial levels. To this end, the authors review regional and provincial economic and manufacturing performance in Vietnam during the period of vigorous reforms of the Doi Moi and external liberalization (1995-2015). The paper employs the fixed effect regression to test the relation of industrial performance, economic growth and trade liberalization at both regional and provincial levels. The estimation results suggest that FDI inflows and trade openness play important roles in accelerating industrial performance at both the regional and provincial levels in Vietnam. Regions and provinces with better infrastructure seem to accumulate more benefits from trade liberalization as well as FDI which suggests that provincial authorities should invest in building new and more modern infrastructure and also formulating rules and regulations governing FDI inflows.

Suggested Citation

  • Le, Huong & Bui, Ly, 2022. "The Impacts of Trade Openness on Industrial Performance at Regional and Provincial Level in Vietnam," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 47(1), pages 85-107, March.
    • Handle: RePEc:ris:jecdev:0023
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    References listed on IDEAS

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    More about this item

    Keywords

    Industrial Performance; Foreign Direct Investment (FDI); Trade Openness; Economic Regions;
    All these keywords.

    JEL classification:

    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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