Is FDI Good for Employment? A Comprehensive Look into Vietnamese Firms

T. H. Vinh Cao and T. Duong Bui
Additional contact information
T. H. Vinh Cao: Foreign Trade University, Vietnam
T. Duong Bui: Development and Policies Research Center, Vietnam

Journal of Economic Development, 2025, vol. 50, issue 3, 81-102

Abstract: Taking advantages of a rich firm-level database of Vietnam (with more than 1.3 million observations) and applying fixed effect techniques, we obtained a comprehensive look about three perspectives of quantity, quality, and location effect of FDI on employment (according to UNCTAD, 2014). We found that FDI indeed helps to raise employment (by 0.6%) (the quantity effect) and wages (by 0.3%) (the quality effect) of firms across Vietnam, but makes the provincial employment reduce by about 0.1% (the location effect). In addition, interestingly, the findings are also diversified across the four key industries and two different types of FDI-invested firms.

Keywords: Foreign Direct Investment; Employment; Quantity Effect; Quality Effect; Location Effect; Vietnam; Firm-Level (search for similar items in EconPapers)
JEL-codes: E24 F21 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://jed.cau.ac.kr/archives/50-3/50-3-4.pdf
None

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:ris:jecdev:021630

DOI: 10.35866/caujed.2024.50.3.004

Access Statistics for this article

Journal of Economic Development is currently edited by Sung Y. Park

More articles in Journal of Economic Development from The Economic Research Institute, Chung-Ang University Room 1040, Building 310, Chung-Ang University, 84 Heukseok-ro, Dongjak-gu, Seoul 06974, South Korea. Contact information at EDIRC.
Bibliographic data for series maintained by Tram Nguyen ().