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A spatial regression approach to FDI in Vietnam: province-level evidence

A spatial regression approach to FDI in Vietnam: province-level evidence

Esiyok, Bulent and Ugur, Mehmet ORCID: 0000-0003-3891-3641 (2015) A spatial regression approach to FDI in Vietnam: province-level evidence. The Singapore Economic Review (ser). ISSN 0217-5908 (Print), 1793-6837 (Online) (doi:https://doi.org/10.1142/S0217590815501155)

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Abstract

Foreign direct investment (FDI) flows into Vietnam have increased significantly in recent years and are distributed unequally between provinces. This paper aims to investigate the locational determinants of FDI in 62 Vietnamese provinces and whether spatial dependence is a significant factor that both researchers and policy-makers should take into account. We report that province-specific percapita income, secondary education enrolment, labor costs, openness to trade, and domestic investment affect FDI directly within the province itself and have indirect effects on FDI in neighboring provinces. The direct and indirect effects coexist with spill over effects and spatial dependence between provinces. Our findings indicate that FDI in Vietnam reflects a combination of complex vertical and export platform motivations on the part of foreign investors; and an agglomeration dynamics that may perpetuate the existing regional disparities in the distribution of FDI capital between provinces.

Item Type: Article
Uncontrolled Keywords: Foreign direct investment, spatial dependence, agglomeration, Vietnam
Faculty / Department / Research Group: Faculty of Business > Greenwich Political Economy Research Centre (GPERC)
Faculty of Business > Institute of Political Economy, Governance, Finance and Accountability (IPEGFA) > Greenwich Political Economy Research Centre (GPERC)
Last Modified: 28 Feb 2019 12:00
Selected for GREAT 2016: None
Selected for GREAT 2017: None
Selected for GREAT 2018: None
Selected for GREAT 2019: None
URI: http://gala.gre.ac.uk/id/eprint/14158

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