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The long-term effects of war on foreign direct investment and economic development: evidence from Vietnam

Cuong Nguyen, Tuyen Tran and Huong Van Vu

Journal of Urban Economics, 2024, vol. 143, issue C

Abstract: In this study, we find a negative effect of unexploded ordnance (UXO) on the geographical density of foreign direct investment and large firms in Vietnam. A 1 % increase in the proportion of UXO-contaminated areas leads to a 0.69 % 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 enterprises (SOEs) due to UXO are smaller, equal to -0.56 and -0.36. Moreover, we also find that a 1 % increase in the proportion of UXO-contaminated areas leads to a 0.38 % 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 O15 R12 (search for similar items in EconPapers)
Date: 2024
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Related works:
Working Paper: The Long-Term Effects of War on Foreign Direct Investment and Economic Development: Evidence from Vietnam (2022) Downloads
Working Paper: The Long-Term Effects of War on Foreign Direct Investment and Economic Development: Evidence from Vietnam (2021) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:eee:juecon:v:143:y:2024:i:c:s0094119024000500

DOI: 10.1016/j.jue.2024.103680

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