The Long-Term Effects of War on Foreign Direct Investment and Economic Development: Evidence from Vietnam

Cuong Nguyen, Tuyen Tran and Huong Vu

MPRA Paper from University Library of Munich, Germany

Abstract: In this study, we find that the negative effect of unexploded ordnance (UXO) on the geographical density of foreign direct investment and large firms is a new channel through which the war legacy impedes local development in Vietnam. A 1% increase in the proportion of UXO-contaminated area leads to a 0.78% relative decrease in the density of FDI firms within districts. Point estimates for the elasticity of the density of joint-venture FDI firms and state-owned enterprise (SOEs) due to UXO are smaller, equal to -0.56 and -0.54. Consequently, a 1% increase in the proportion of UXO-contaminated areas leads to a 0.46% relative decrease in the intensity of nighttime light.

Keywords: War; FDI; unexploded ordnance; local development; Vietnam. (search for similar items in EconPapers)
JEL-codes: O12 R12 (search for similar items in EconPapers)
Date: 2021-08-15
New Economics Papers: this item is included in nep-dev, nep-geo, nep-int, nep-sea and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: The long-term effects of war on foreign direct investment and economic development: evidence from Vietnam (2024)
Working Paper: The Long-Term Effects of War on Foreign Direct Investment and Economic Development: Evidence from Vietnam (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:111891

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