Determinants of provincial FDI in Vietnam: A cross section data analysis
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Determinants of provincial FDI in Vietnam: A cross section data analysis
By Nguyen Dai Hiep (VNP 15)
Supervisor: Dr. Nguyen Van Phuc
Abstract
FDI is of essential importance for achieving economic growth for developing countries, especially for Vietnam, a country which has just opened more than twenty years. There were too many researches about attracting FDI for developing countries. However, there are still less researches related to regional competition of FDI. Therefore, this paper examines the relationship between provincial FDI in Viet Nam and explanatory variables base on variable set of PCI project in Viet Nam and other traditional variables. The purpose of thesis is finding why some provinces and cities such as Binh Duong, Dong Nai, Ba Ria Vung Tau, HCMC... have had good FDI capital and others have not so. From that the thesis suggests policy recommendation for provinces and cities enhancing regional system for developing economics. I had a literature review on regional development, attracting regional FDI and across country, the estimated model was built with collected data and econometric analysis result, I had demonstrated that our hypotheses are right or wrong. And then we answered the research questions and objectives of this study. Using data collected by the General Statistical Office of Viet Nam (GSO) and Provincial Competition Index (PCI) project, estimation result shows that gross industrial output, legal institution and infrastructures statistically significant to provincial FDI at the level 1% and 5%; business support service had significance to provincial FDI at the level nearly 10%.
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