The impact of Foreign Direct Investment on Economic growth in Vietnam
- 발행기관 아주대학교
- 지도교수 Min Je Sung
- 발행년도 2010
- 제출일 2010-04-21
- 학위수여년월 2010. 7
- 학위명 석사
- 학과 국제대학원 국제경영학과
- 실제URI http://www.dcollection.net/handler/ajou/000000010828
- 본문언어 영어
- 저작권 아주대학교 논문은 저작권에 의해 보호받습니다.
초록/요약
Foreign Direct Investment (FDI) is expected to benefit developing countries through raising domestic investment, creating jobs, transferring technology, enhancing domestic competition and producing positive externalities. However, each developing country has different initial conditions and distinctive institutional setups. Heterogeneity in each country implies that the benefit of FDI may vary from country to country. The purpose of this thesis is to examine the role of FDI on economic growth in Vietnam using time series data over the period 1986-2008. The period includes the 1990s, when Vietnam launched economic reform Doi Moi and financial liberalization process. We construct an endogenous growth model in which the rate of technological progress is the primary determinant of the long term growth rate of income. Cointegration technique is utilized to verify the adoption of endogenous growth model of Vietnam. The result indicates that there exists a long-run relationship between FDI and economic growth. Employing the Error Correction Model (ECM), we examine the speed of adjustment toward the long run equilibrium. Our finding shows that both FDI and human capital have positive effects on economic growth. Domestic investment is stimulated by FDI. Nevertheless, the negative effects of interaction terms between FDI and human capital on economic growth show that the low labor skills in Vietnam restrict the contribution of FDI to economic growth. It means that absorptive capability of FDI in Vietnam is still slow and thus Vietnam needs to improve labor skills to maximize the benefits of FDI on economic growth.
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CONTENTS PAGE NO
Abstract ii
Acknowledgement iii
Table of Contents iv
List of Figures vi
List of Tables vii
Abbreviations viii
CHAPTER I
INTRODUCTION 01
1.1 Statement of the problem 01
1.2 Objectives of the study 02
1.3 Scopes of the study 02
1.4 Organization of the study 03
CHAPTER II
FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH
IN VIETNAM 04
2.1 Overview of Vietnam economy 1986-2009 04
2.2 Overview of FDI inflow into Vietnam 1986 ？ 2009 06
2.2.1 Sectoral distribution of FDI 08
2.2.2 Regional distribution of FDI 10
2.2.3 Country of origin 12
2.3 Factors contributing to FDI flows to Vietnam 14
2.4 The role of FDI in Vietnam economy 15
2.4.1 The role of FDI in national investment and economic growth 15
2.4.2 The role of FDI in industrial production and export capacity 16
2.4.3 The role of FDI in State budget revenues 17
2.4.4 The role of FDI in Technology Transfer 18
2.5 The obstacles to foreign investment in Vietnam 20
2.6 FDI in Vietnam in comparison with some South East Asian countries 22
CHAPTER III
REVIEW OF RELATED LITERATURE 24
3.1 Theoretical Studies on FDI and Economic Growth 24
3.2 Empirical Studies on FDI and Economic Growth 25
3.3 Foreign Direct Investment and Domestic investment 28
CHAPTER IV
THEORETICAL FRAMEWORK AND METHODOLOGY 31
4.1 Theoretical Framework of FDI and economic growth 31
4.2 Methodology 37
4.2.1 FDI and economic growth 38
4.2.2 FDI and domestic investment 39
4.2.3 Nonstationary, Cointegration and Error Correction Model (ECM) 39
4.3 Data 41
CHAPTER V
ECONOMETRIC RESULTS 43
5.1 Unit Root Test 43
5.2 Cointegration Test 45
5.3 Error Correction Model 50
CHAPTER VI
CONCLUSION AND POLICY IMPLICATIONS 54
6.1 Conclusion 54
6.2 Policy implications 55
REFERENCES 58
APPENDICES 61
Appendix A 61
Appendix B 63
