Openness to trade, foreign direct investment, and economic growth in Vietnam

Nguyen, Anh-Tu; Anwar, Sajid; Alexander, Robert R.; Lu, Shih‐Hao

doi:10.1080/00036846.2021.2009112

Cited by 17 publications

(11 citation statements)

References 74 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…There is a clear statistically supported relationship between FDI and globalisation, as well as between FDI and trade openness (Dima, 2016). However, Nguyen et al (2022) финансы региона Regions], 20(1), 2024 www.economyofregions.org found that while exports and imports do not statistically significantly affect growth, FDI considerably encourages it in the long run. Ozturk and Radouai (2020) concluded that trade openness has a statistically significant but small impact on economic growth, with no significant short -or longrun effect on economic development in Morocco.…”

Section: Literature Reviewmentioning

confidence: 99%

The Impact of Foreign Direct Investment and Trade Openness on The Ghanaian Economy

Yeboah

2024

EoR

View full text Add to dashboard Cite

Foreign direct investment (FDI) and trade openness serve as macroeconomic indicators that support economic growth. Numerous studies conducted in recent years have empirically demonstrated the significance of FDI and trade liberalisation. Historical data illustrates that Ghana operates as a net importer, posing several challenges for domestic firms due to the comparative advantage of multinational enterprises and economies of scale. However, the full extent of the theories surrounding FDI and trade openness remains incompletely understood across all economies. This study aims to uncover the impact of FDI and foreign trade on economic growth in Ghana. The study utilised time series data sourced from the World Bank spanning from 1985 to 2021, on an annual frequency. The econometric methods employed include a unit root test (ADF), Engle-Granger cointegration test, and multiple regression analysis (Ordinary Least Squares). The ADF unit root test indicated that the variables were non-stationary and integrated at first-order difference. The Engle-Granger cointegration test revealed that the variables are cointegrated. Regression analysis results demonstrated that both FDI and trade openness exert a positive influence on economic enhancement in Ghana, with GDP serving as a proxy for growth. Furthermore, the analysis showed that FDI has a positive impact on GDP per capita, whereas trade openness negatively affects it, utilising GDP per capita as the explained variable. Based on these findings, the study recommends that policymakers implement sound FDI and trade policies to foster economic growth in the country.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

The Impact of Foreign Direct Investment and Trade Openness on The Ghanaian Economy

Yeboah

2024

EoR

View full text Add to dashboard Cite

show abstract

“…Nguyen et al . (2022) recently showed the value of external funding in boosting the inclination of foreign subsidiaries to export.…”

Section: Literature Reviewmentioning

confidence: 99%

Do credit risks deter FDI? Empirical evidence from the SAARC countries

Alam,

Tahir,

Omar Ali

2023

JEFAS

View full text Add to dashboard Cite

PurposeThis paper makes a novel attempt to estimate the potential impact of credit risk on foreign direct investment (FDI hereafter), thereby focusing on a completely unexplored area in the existing empirical literature.Design/methodology/approachTo provide a comprehensive understanding of the relationship between credit risk and FDI inflows, the study incorporates all the eight-member economies of the South Asian Association of Regional Cooperation (SAARC hereafter) and analyzes a panel data set, over the period 2011 to 2019, extracted from the World Development Indicators, using the suitable econometric techniques for the efficient estimations of the specified models.FindingsThe results indicate a negative and statistically significant relationship between the credit risk of the banking sectors and FDI inflows. Similarly, market size and inflation rate appear to be the two other main factors behind the increasing FDI inflows in the SAARC member economies. Interestingly, the size of the market became irrelevant in attracting FDI inflows when the Indian economy is excluded from the sample due to its higher economic weight. On the other hand, FDI inflows are not dependent on the level of trade openness, with most of the specifications showing either an insignificant or negative coefficient of the variable.Practical implicationsThe obtained results are unique and robust to alternative methodologies, and hence, the SAARC economies could consider them as the critical inputs in formulating the appropriate policies on FDI inflows.Originality/valueThe findings are unique and original. The authors have established a relationship between credit risk and FDI for the first time in the SAARC context.

show abstract

“…FDI acts as a crucial innovation catalyst at the regional level in developing. Its multiplier effects such as growth, employment, technology transfer, industry competitiveness, infrastructure development, and government revenues, are found to generate economic stability and achieve targeted economic growth in developing countries (Narantuya et al ., 2022; Nguyen et al ., 2022; Sohail and Li, 2023). Historically, there have been substantial FDI flows from developed to developing nations.…”

Section: Literature Reviewmentioning

confidence: 99%

Modelling spatio-temporal patterns of Chinese foreign direct investment under the Belt and Road Initiative

Ardianto,

Chhetri,

Oktriana

et al. 2023

JILT

View full text Add to dashboard Cite

PurposeThis paper aims to explore the spatio-temporal patterns of Chinese foreign direct investment (FDI) since the inception of the Belt and Road Initiative (BRI) in 2013 as an extended version of geographically weighted regression.Design/methodology/approachThe panel data are used to examine spatial and temporal dynamics of the magnitude and the direction of China's outward FDI stock and its flow from 2011 to 2015 at a country level. Using the geographically and temporally weighted regression (GTWR), spatio-temporal distribution of FDI is explained through Logistic Performance Index, the size of gross domestic product (GDP), Shipping Linear Connectivity Index and Container Port Throughput.FindingsA comparative analysis between participating and non-participating countries in the BRI shows that the size of GDP and Container Port Throughput of the participating countries have a positive effect on the increases of China's outward FDI Stock to Asia especially after 2013, while non-participating countries, such as North America, Western Europe and Western Africa, have no significant effect on it before and after the implementation of the BRI.Research limitations/implicationsThe findings, however, will not necessarily provide insight into the needs of China's outward FDI in certain countries to develop their economy. The findings provide the evidence to inform policy making to help identify the winners and losers of the investment, scale and direction of investment and the key drivers that shape the distributive investment patterns globally.Practical implicationsThe study provides the empirical evidence to inform investment policy and strategic realignment by quantifying scale, direction and drivers that shape the spatio-temporal shifts of China's FDI.Social implicationsThe analysis also guides the Chinese government improve bilateral trade, build infrastructure and business partnerships with preferential countries participating in the BRI.Originality/valueThere is an urgent need to adopt a new perspective to unfold the spatial temporal complexity of FDI that incorporates space and time dependencies, and the drivers of the situated context to model their effects on FDI. The model is based on GTWR and an extended geographically weighted regression (GWR) allowing the simultaneous analysis of spatial and temporal decencies of exploratory variables.

show abstract

Openness to trade, foreign direct investment, and economic growth in Vietnam

Cited by 17 publications

References 74 publications

The Impact of Foreign Direct Investment and Trade Openness on The Ghanaian Economy

The Impact of Foreign Direct Investment and Trade Openness on The Ghanaian Economy

Do credit risks deter FDI? Empirical evidence from the SAARC countries

Modelling spatio-temporal patterns of Chinese foreign direct investment under the Belt and Road Initiative

Contact Info

Product

Resources

About