Determinants of foreign direct investment in Southern Central Coast of Vietnam: a spatial econometric analysis

Hoang Hiep, Cong Minh Huynh (), Nguyen Minh Huy Duong () and Ngoc Hoe Chau ()
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Nguyen Minh Huy Duong: University of Economics, The University of Da Nang
Ngoc Hoe Chau: Vietnam Academy of Social Sciences

Economic Change and Restructuring, 2022, vol. 55, issue 1, No 9, 285-310

Abstract: Abstract This paper examines the determinants of foreign direct investment in the Southern Central Coast (SCC) region of Vietnam over the period 2007–2016 by a spatial econometric approach. The estimation results show that FDI inflows in the SCC region are attracted by the cheap labor cost of the host province, and provinces that own national seaports have great advantages in attracting FDI, confirming the vertical FDI form in the SCC region. Interestingly, skilled labor force in the surrounding provinces has a positive impact on FDI inflows in the host province. In particular, regarding the role of local institutional quality, the estimation shows that the legal institutions and level of social security in the host province play important roles in attracting FDI.

Keywords: FDI; Local institutions; Region; Spatial econometrics; Vietnam (search for similar items in EconPapers)
JEL-codes: C31 F21 R12 R58 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (6)

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DOI: 10.1007/s10644-020-09315-3

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