| _version_ | 1866902176836616192 |
|---|---|
| author | Do Thi Ngoc, Lan Le, Quang Canh |
| author_facet | Do Thi Ngoc, Lan Le, Quang Canh |
| contents | <p>Foreign direct investment (FDI) is essential for economic growth, and the attraction of FDI inflow is a solution to foster economic growth in developing countries. Literature has well documented that FDI is determined by many factors among which foreign aid has a controversial impact on FDI depending on complementary or substitute effects between these two capital flows. This study investigates the impacts of foreign aid on FDI and whether this impact is different across provinces with hetero-quality governance. Using the fixed-effect and dynamic generalized method of moments estimation models for balanced panel data for 2006–2017, this paper finds a negative impact of foreign aid on FDI at the provincial level, but the effect is different cross-province with different proxies of the quality of governance. These empirical results shed light on the foreign aid allocation policies and management to increase the attractiveness of FDI inflow in Vietnam.</p> |
| format | Recurso digital |
| id | zenodo_https___doi_org_10_5281_zenodo_17054460 |
| institution | Zenodo |
| language | eng |
| publishDate | 2021 |
| publisher | Zenodo |
| record_format | zenodo |
| spellingShingle | Foreign AID, Governance, and Foreign Direct Investment in Vietnam: A Dynamic Gmm Analysis Do Thi Ngoc, Lan Le, Quang Canh Foreign aid, governance, FDI, provincial level, Vietnam <p>Foreign direct investment (FDI) is essential for economic growth, and the attraction of FDI inflow is a solution to foster economic growth in developing countries. Literature has well documented that FDI is determined by many factors among which foreign aid has a controversial impact on FDI depending on complementary or substitute effects between these two capital flows. This study investigates the impacts of foreign aid on FDI and whether this impact is different across provinces with hetero-quality governance. Using the fixed-effect and dynamic generalized method of moments estimation models for balanced panel data for 2006–2017, this paper finds a negative impact of foreign aid on FDI at the provincial level, but the effect is different cross-province with different proxies of the quality of governance. These empirical results shed light on the foreign aid allocation policies and management to increase the attractiveness of FDI inflow in Vietnam.</p> |
| title | Foreign AID, Governance, and Foreign Direct Investment in Vietnam: A Dynamic Gmm Analysis |
| topic | Foreign aid, governance, FDI, provincial level, Vietnam |
| url | https://doi.org/10.5281/zenodo.17054460 |