Abstract
This study focused on the impact of FDI on economic growth in the entire of Vietnam and in the provinces which are ranked differently on socio - economic conditions. Based on a panel dataset of 64 provinces and cities in Vietnam and used the fixed - effects estimation method for econometric models, the empirical results show that FDI has a positive impact on economic growth of Vietnam in the period 2000 - 2010. This effect in the provinces with better socio - economic conditions was stronger than in the provinces with worse socio- economic conditions. Promulgating Unified Enterprises and amending Investment Law in 2005 as well as accessing to WTO in 2007 have affected positively in attracting FDI in the period 2006 - 2010. However Law factor has a more positive and stronger impact on FDI attraction of Vietnam than WTO accession. In addition, the study examines the impact of FDI on economic growth by different regions in Vietnam. The results show that FDI has a positive impact on economic growth only exists in 4 of 6 regions of Vietnam in the period 2000 - 2010.
Highlights
In the current period of severe economic competition, rapid and sustainable growth has posed many challenges for the countries in the world
The results show that FDI has a positive impact on economic growth only exists in 4 of 6 regions of Vietnam in the period 2000 - 2010
This paper focuses on the impact of FDI on the economic growth of the entire Vietnam and in the provinces which are differently ranked on socio-economic conditions in the period 2000 - 2010
Summary
In the current period of severe economic competition, rapid and sustainable growth has posed many challenges for the countries in the world. Vol 5, No 8; 2012 differently in order to ensure a fuller reflection the role of FDI in Vietnam’s growth during the period of 2000 2010 This period was selected to analyze because it has important significance in implementing the 10 - year socio - economic development strategy from 2001 - 2010 that will lead Vietnam basically to become an industrialization and modernization country by the year 2020. With more incentive and flexible orientation in the promulgation of Unified Enterprise Law together with the amendment in investment Law in 2005 offered many freer paths for foreign investors in Vietnam, this leads to a problem that “How WTO accession and Law amendment have impacts on the FDI attraction in Vietnam in general and in the provinces which were differently ranked on socio-economic conditions in particular?” These are the problems that this study needs to explore
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