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http://dx.doi.org/10.13106/jafeb.2022.vol9.no2.0325

The Effect of Foreign Direct Investment Inflow on Exports: Evidence from Vietnam  

DO, Duc Anh (School of Management, Wuhan University of Technology, Faculty of Economics and Business Administration, Hanoi University of Mining and Geology)
SONG, Yinghua (School of Safety Science and Emergency Management, Wuhan University of Technology)
DO, Huu Tung (Faculty of Economics and Business Administration, Hanoi University of Mining and Geology)
TRAN, Thi Thu Hien (Faculty of Fundamental Science, Hanoi University of Mining and Geology)
NGUYEN, Thanh Thuy (Faculty of Economics and Business Administration, Hanoi University of Mining and Geology)
Publication Information
The Journal of Asian Finance, Economics and Business / v.9, no.2, 2022 , pp. 325-333 More about this Journal
Abstract
Foreign direct investment (FDI) and export are now often regarded as two of the most important drivers of economic growth on a worldwide scale. The impact of foreign direct investment on Vietnam's exports is investigated in this study. The data for the time period 1985-2020 was obtained from the World Bank and the Vietnam General Statistics Office. The years 1985 to 2020 were chosen to evaluate the evolution of macroeconomic parameters since 1986. The impact of the Covid-19 epidemic on renovation reform. The Johansen co-integration test proved that FDI and domestic investment (DI) had a long-term positive impact on Vietnam's export growth. The Granger causality test revealed that there is a one-way relationship between FDI and export in the near term, but no such relationship exists between DI and export. The result of the variance decomposition study demonstrates that the FDI sector has a bigger impact on Vietnam's export growth than the DI sector. Furthermore, export activities are vulnerable to FDI sector shocks. As a result, in recent years, FDI has been regarded as the most important factor of export growth in Vietnam.
Keywords
FDI; Domestic Investment; Export; VECM; Vietnam;
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Times Cited By KSCI : 8  (Citation Analysis)
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