Spatial effects of foreign direct investment on wage inequality in Vietnam

Quynh Anh Do, Anh Duc Do, Minh Huan Doan, Quoc Hoi Le, Anh Duc Le and Thi Thanh Duong Nguyen

Cogent Economics & Finance, 2024, vol. 12, issue 1, 2293297

Abstract: This study analyzes the effects of foreign direct investment (FDI) on wage inequality in Vietnam by utilizing panel data from 63 provinces over the period 2010–2018. The spatial autocorrelation model is used in the study. Empirical results from the spatial econometric model reveal that FDI tends to increase wage inequality in localities and has direct and spatial effects. Economic growth has led to a reduction in the wage inequality between skilled and unskilled labor. The increase in the proportion of the skilled labor force reduces wage inequality in provinces with high human capital and developed education systems. The study results imply that the policy on attracting and utilizing FDI needs to be aligned with training and human capital development to ensure sustainable development. It is also necessary to emphasize professional training for the workforce to attract FDI.

Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/23322039.2023.2293297 (text/html)
Access to full text is restricted to subscribers.

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:taf:oaefxx:v:12:y:2024:i:1:p:2293297

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/OAEF20

DOI: 10.1080/23322039.2023.2293297

Access Statistics for this article

Cogent Economics & Finance is currently edited by Steve Cook, Caroline Elliott, David McMillan, Duncan Watson and Xibin Zhang

More articles in Cogent Economics & Finance from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().