Browse > Article
http://dx.doi.org/10.15722/jds.20.04.202204.77

Impact of International Trade Cooperation and Distribution on Foreign Direct Investment: Evidence from Vietnam  

NGUYEN, Chi Dieu Thi (School of Banking and Finance, National Economics University)
Publication Information
Journal of Distribution Science / v.20, no.4, 2022 , pp. 77-83 More about this Journal
Abstract
Purpose: This study aims to find the impact of international trade cooperation and distribution on foreign direct investment (FDI). The study also tests the impact of lag variables of trade cooperation and distribution on FDI in the future. Research design, data, and methodology: Autoregressive Distributed Lag model is applied to analyze the impact of chosen variables such as total trade (TRADE), trade openness (OPEN), the exchange rate (EXR), inflation (INF), and gross domestic growth (GDP) on FDI. Quarterly data is collected from Vietnam General Statistic Office, Vietnam General Department of Customs, International Monetary Fund, and The World Bank from 2006 to 2020. Stata 14 software is used to analyze the regression and test variables. Results: The findings indicate that TRADE, OPEN, INF, GDP, and their lags affect both positively and negatively on FDI in different periods. While OPEN still expresses an unclear impact on FDI. Moreover, this study proves that the FDI of a nation is influenced by international cooperation. Conclusions: This study indicates the importance of international trade cooperation and distribution in not only attracting foreign investment sources but also developing the economy. Findings are necessary bases for governments or authorities in signing international trade agreements in the future.
Keywords
Distribution; Foreign Direct Investment; International Trade Cooperation; Vietnam;
Citations & Related Records
Times Cited By KSCI : 5  (Citation Analysis)
연도 인용수 순위
1 Farhad, N., Alberto, P., & Ali, Y. (2001). Human Capital and FDI Inflows to Developing Countries: New Empirical Evidence. World Development, 29(9), 1593-1610. https://doi.org/10.1016/S0305-750X(01)00054-7.   DOI
2 Hicks, J. R. (1937). Mr. Keynes and the "Classics": A Suggested Interpretation. Econometrica, 5(2), 147-159. https://doi.org/10.2307/1907242.   DOI
3 Bannaga, A., Gangi, Y., Abdrazak, R., & Al-Fakhry, B. (2013). The effects of good governance on foreign direct investment inflows in Arab countries. Applied Financial Economics, 23(15), 1239-1247. https://doi.org/10.1080/09603107.2013.802088.   DOI
4 Jin, H. K. (2016). The Investment Aspects from the FTA between Korea and China. Journal of Distribution Science, 14(8), 87-92. https://doi.org/10.15722/JDS.14.8.201608.87.   DOI
5 Joseph, D.A., Wang, P.M. & Park, D.H. (2010). The Impact of Exchange Rate on FDI and the Interdependence of FDI over Time. The Singapore Economic Review, 55(4), 733-747. https://doi.org/10.1142/S0217590810004024.   DOI
6 Majidi, A. F. (2017). Globalization and Economic Growth: The Case Study of Developing Countries. Asian Economic and Financial Review, 7(6), 589-599. https://doi.org/10.18488/journal.aefr.2017.76.589.599.   DOI
7 Malik, Z. (2019). Impact of Exchange rate on Foreign Direct Investment in Pakistan. Scientific Journal of Agricultural and Social Studies, 1(1), 42-59.
8 Masron, T.A., & Kamaruddin, R. (2009). Macroeconomic synchronization and foreign direct investment inflow into ASEAN: Evidence from Malaysia's experiences. International Business Research, 2(3): 36-46. https://doi.org/10.5539/ibr.v2n3p36.   DOI
9 Nakagane, K. (2002). Japanese Direct Investment in China: Its Ef ects on China's Economic Development. Palgrave Macmillan, London. https://doi.org/10.1057/9781403907394_4.   DOI
10 Ismail, N. W., Smith, P., & Kugler, M. (2009). The Effect of ASEAN Economic Integration on Foreign Direct Investment. Journal of Economic Integration, 24(3), 385-407. https://doi.org/10.11130/jei.2009.24.3.385.   DOI
11 Jayachandran, G., & Seilan, A. (2010). A causal relationship between trade, foreign direct investment, and economic growth for India. International research journal of finance and economics, 42, 74-88.
12 Jenkins, R. (2004). Vietnam in the global economy: trade employment and poverty. https://doi.org/10.1002/jid.1060. Journal of international development, 16(1), 13-28.   DOI
13 Tobin, J. (1969). A General Equilibrium Approach to Monetary Theory. Journal of Money. Credit & Banking, 1, 15-29. https://doi.org/10.2307/1991374.   DOI
14 Imansyah & Nasrudin. (2016). The Impact of Economic Integration and Macroeconomic on Indonesia Foreign Direct Investment (FDI): A Panel Gravity Model. Journal of Distribution Science, 14(4), 33-38. https://doi.org/10.15722/JDS.14.4.201604.33.   DOI
15 Omer, A. I. & Hisham, M. H. (2013). Determinants of foreign direct investment in Sudan: an econometric perspective. The Journal of North African Studies, 18(1), 1-15. https://doi.org/10.1080/13629387.2012.702013.   DOI
16 Pokou, K. (2020). FDI Inflows and Financial Development in Ecowas: Causality Analysis in the Frequency Domain. Asian Economic and Financial Review, 10(8), 946-955. https://doi.org/10.18488/journal.aefr.2020.108.946.955.   DOI
17 Sahu, P. K. (2014). The influence of Malaysian FTAs on trade and investment, with special reference to Malaysia-India FTA. The IUP Journal of applied economics, 13(2), 48-70.
18 Sauvant, K.P. (2021). Improving the distribution of FDI benefits: The need for policy-oriented research, advice, and advocacy. Journal of International Business Policy 4, 244-261. https://doi.org/10.1057/s42214-021-00109-6.   DOI
19 Shrestha, M. B., & Bhatta, G. R. (2018). Selecting appropriate methodological framework for time series data analysis. The Journal of Finance and Data Science, 4(2), 71-89. https://doi.org/10.1016/j.jfds.2017.11.001.   DOI
20 Tembe, P. E. & Xu, K. (2012). Attracting Foreign Direct Investment in Developing countries: Determinants and Policies - A comparative Study between Mozambique and China. International Journal of Financial Research, 3(4), 69-82. https://doi.org/10.5430/ijfr.v3n4p69.   DOI
21 Wang, C., Hong,J., Kafouros, M., & Wright, M. (2012). Exploring the role of government involvement in outward FDI from emerging economies. Journal of International Business Studies, 43(7), 655-676. https://doi.org/10.1057/jibs.2012.18.   DOI
22 Yong, J.J. (2013). The Impact of Free Trade Agreements on Foreign Direct Investment: The Case of Korea. Journal of East Asian Economic Integration, 17(4), 417-445. http://dx.doi.org/10.11644/KIEP.JEAI.2013.17.4.272.   DOI
23 Belloumi, M. (2014). The relationship between trade, FDI and economic growth in Tunisia: An application of autoregressive distributed lag model. Economic Systems, 38(2), 1-22. https://doi.org/10.1016/j.ecosys.2013.09.002.   DOI
24 Ang, J. B. (2008). Determinants of foreign direct investment in Malaysia. Journal of Policy Modeling, 30(1), 185-189. https://doi.org/10.1016/j.jpolmod.2007.06.014.   DOI
25 Barker, T. (1977). International trade and economic growth: An alternative to the neoclassical approach. Cambridge Journal of Economics, 1(2), 153-177. https://doi.org/10.1093/oxfordjournals.cje.a035356.   DOI
26 Barro, R.J., & Sala, M. X. (2004). Economic Growth. MIT, Cambridge.
27 Pesaran, M. H. (1997). The Role of Economic Theory in Modelling The Long Run. The Economic Journal, 107(440), 178-191. https://doi.org/10.1111/1468-0297.00151.   DOI
28 Yugang, H. (2018). A Study on the Determinants of Free Trade Agreement in South Korea: Evidence from Asian Countries. Journal of Distribution Science, 16(11), 37-45. https://doi.org/10.15722/JDS.16.11.201811.37.   DOI
29 Dang, V.C., & Nguyen, Q. K. (2021). Determinants of FDI attractiveness: Evidence from ASEAN-7 countries. Cogent Social Sciences, 7(1), 2004676. https://doi.org/10.1080/23311886.2021.2004676.   DOI
30 Dritsaki, M., & Dritsaki, C. (2020). Trade Openness and Economic Growth: A Panel Data Analysis of Baltic Countries. Asian Economic and Financial Review, 10(3), 313-324. https://doi.org/10.18488/journal.aefr.2020.103.313.324.   DOI
31 Nguyen, C. D. T., Luong, B. T., & Hoang, H. L. T. (2021). The Impact of Logistics and Infrastructure on Economic Growth: Empirical Evidence from Vietnam. The Journal of Asian Finance, Economics and Business, 8(6), 21-28. https://doi.org/10.13106/jafeb.2021.vol8.no6.0021.   DOI