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Determinants of foreign direct investment in Vietnamese provinces: a spatial econometric analysis

Michael Goujon and Hong Hiep Hoang
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Hong Hiep Hoang: CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique

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Abstract: This article uses spatial econometric models to explore the determinants of the distribution of foreign direct investment (FDI) inflows among Vietnamese provinces in the period after the Asian crisis. First tests reveal spatial autocorrelation in the OLS estimated errors, justifying the use of spatial error models estimated using the maximum likelihood estimator. Relations between FDI and its traditional determinants are surprisingly robust to the inclusion of spatial interdependence terms. Results show a dominance of the form of regional trade platform FDI, and of regional agglomeration effects. National and provincial economic policies are also found to be important factors for attracting FDI.

Keywords: cerdi (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (8)

Published in Post-Communist Economies, 2014, 26 (n°1), pp.103-121

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00983757

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