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SPECIAL ECONOMIC ZONES AND FDI ATTRACTION TO DISTRICTS IN VIETNAM: A NON-PARAMETRIC APPROACH

Huong Quynh Nguyen and Dao Ngoc Tien ()
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Huong Quynh Nguyen: Foreign Trade University, HCM City Campus, No. 15 D5 Street, 25th Ward Binh Thanh District, Ho Chi Minh City, Vietnam2World Trade Institute, University of Bern, Hallerstrasse 6, 3012 Bern, Switzerland
Dao Ngoc Tien: Foreign Trade University, Main Campus, No. 91 Chua Lang Street Dong Da District, Hanoi City, Vietnam

The Singapore Economic Review (SER), 2021, vol. 66, issue 04, 1027-1053

Abstract: Special Economic Zones (SEZs) are considered as an important regional industrial policy to attract foreign investment in a developing country such as Vietnam. The development of SEZs in Vietnam including the comprehensive review of infrastructure and business environment in SEZs is presented in this paper for the first time. Moreover, our results reveal the lower estimated density of domestic customers and suppliers connecting with foreign direct invested firms in SEZs in comparison to their domestic counterparts. Most importantly, this paper gives novel non-parametric evidence to indicate the positive causal effects of the zoning policies on the foreign direct investment at district level in the country during the period of 2011–2015.

Keywords: Vietnam; Special Economic Zones (SEZs); foreign direct investment (FDI) (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1142/S0217590820490077

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