How Does the Competitiveness Index Promote Foreign Direct Investment at the Provincial Level in Vietnam? An Integrated Grey Delphi–DEA Model Approach

Phi-Hung Nguyen (), Thi-Ly Nguyen, Hong-Quan Le, Thuy-Quynh Pham, Hoang-Anh Nguyen and Chi-Vinh Pham
Additional contact information
Phi-Hung Nguyen: Research Center of Applied Sciences, Faculty of Business, FPT University, Hanoi 100000, Vietnam
Thi-Ly Nguyen: Faculty of Management, Hanoi School of Business and Management, Hanoi 100000, Vietnam
Hong-Quan Le: Research Center of Applied Sciences, Faculty of Business, FPT University, Hanoi 100000, Vietnam
Thuy-Quynh Pham: Research Center of Applied Sciences, Faculty of Business, FPT University, Hanoi 100000, Vietnam
Hoang-Anh Nguyen: Research Center of Applied Sciences, Faculty of Business, FPT University, Hanoi 100000, Vietnam
Chi-Vinh Pham: Research Center of Applied Sciences, Faculty of Business, FPT University, Hanoi 100000, Vietnam

Mathematics, 2023, vol. 11, issue 6, 1-30

Abstract: Foreign direct investment (FDI) is an important factor in building a strong economy for a country, particularly in developing and emerging markets. Both domestic enterprises and policy makers have been motivated to attract FDI for the benefits of FDI, such as technological transfers, spillover benefits, and rising competition. There is a need for a functional model to assess how the competitive index affects FDI attractiveness. Therefore, in this study, the authors use an integrated model of Grey Delphi, the Data Envelopment Analysis Super Slack-Based Measure Model (DEA–Super SBM), and the Malmquist Model (DEA–Malmquist) to evaluate the FDI attractiveness of Vietnamese provinces from 2017 to 2021. Firstly, ten critical dimensions of the provincial competitive index (PCI) affecting the number of FDI by cases and amount of FDI capital were validated via the Grey Delphi method. Secondly, the Super-SBM model is applied to assess the FDI efficiency of 63 provinces in Vietnam from 2017 to 2021. Then, the DEA–Malmquist model is employed to analyze the total change in the productivity of 63 provinces’ FDI performance in Vietnam. The findings of this study revealed that the efficiency of FDI in Vietnam’s provinces is relatively low, and there is a significant variation in the attractiveness of FDI among the provinces. This study can provide valuable insights for policy makers and other stakeholders in developing effective strategies to attract FDI and foster economic development.

Keywords: efficiency; inefficiency; foreign direct investment; grey Delphi; Data Envelopment Analysis; Malmquist; Super Slack-Based Measure (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.mdpi.com/2227-7390/11/6/1500/pdf (application/pdf)
https://www.mdpi.com/2227-7390/11/6/1500/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jmathe:v:11:y:2023:i:6:p:1500-:d:1101637

Access Statistics for this article

Mathematics is currently edited by Ms. Emma He

More articles in Mathematics from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().