THE RELATIONSHIPS BETWEEN FOREIGN DIRECT INVESTMENT, STATE-OWNED INVESTMENT, PRIVATE INVESTMENT, IMPORT, EXPORT AND ECONOMIC GROWTH IN VIETNAM

Do Duc Anh, Yinghua Song and Moxiao Li
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Do Duc Anh: School of Safety Science and Emergency Management, Wuhan University of Technology, Wuhan 430070, P. R. China†School of Management, Wuhan University of Technology, Wuhan 430070, P. R. China
Yinghua Song: School of Safety Science and Emergency Management, Wuhan University of Technology, Wuhan 430070, P. R. China†School of Management, Wuhan University of Technology, Wuhan 430070, P. R. China‡China Emergency for Management Research Center, Wuhan 430070, P. R. China
Moxiao Li: School of Safety Science and Emergency Management, Wuhan University of Technology, Wuhan 430070, P. R. China‡China Emergency for Management Research Center, Wuhan 430070, P. R. China

The Singapore Economic Review (SER), 2025, vol. 70, issue 02, 455-485

Abstract: A key component for economic growth is the foreign direct investment (FDI), which drew the attention of researchers worldwide. This study aims to examine the relationship between foreign direct investment (FDI), state-owned investment (SOI), private investment (PI), import (M), export (X) and Vietnam’s economic growth (GDP) since the Renovation (1986) to now (2019). The Vector Autoregression Model (VAR) and Vector Error Correction Model (VECM) were utilized to realize the above-mentioned goals. The Johansen co-integration test confirmed that there exists a long-run relationship among the above variables. The Granger causal relationship test found one-way causal relationship from GDP to FDI and PI in the short-run. Besides, the similar causal relationship between export and GDP is confirmed. Also, the two-way causal relationship between PI and export in the short-run is also found in this study. In addition, the impact of a shock of SOI on GDP is more significant than that of an FDI or PI shocks on GDP. By contrast, the response of GDP to shocks of import and export seems are small. Finally, it is certain that FDI plays an essential role in Vietnam’s economy.

Keywords: Foreign direct investment; state-owned investment; private investment; economic growth; Vietnam (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1142/S0217590821500314

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