Foreign Direct Investment and Exports: the Experiences of Vietnam

Xuan Nguyen and Yuqing Xing

No EMS_2006_13, Working Papers from Research Institute, International University of Japan

Abstract: We examined the implementation statuses of a total of 5,919 foreign direct investment projects approved by the Vietnamese Ministry of Planning and Investment since 1988, and compiled a database of actually disbursed FDI in Vietnam. The database covers FDI flows into Vietnam from 23 countries from 1990 to 2004. Using the data, we analyzed the impact of FDI on the exports of Vietnam with gravity equations. The empirical results demonstrate that FDI is one of major factors driving the rapid export growth of Vietnam. A one per cent increase in FDI inflows will be expected to give rise to 0.25 per cent increase in exports. The results are robust under different specifications.

Keywords: FDI; Exports; Gravity; Vietnam (search for similar items in EconPapers)
JEL-codes: F14 F23 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2006-11
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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