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Impact of foreign investment on household welfare: Evidence from Vietnam

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  • Bui, Anh Tuan
  • Nguyen, Cuong Viet
  • Pham, Thu Phuong

Abstract

We examine the impact of foreign direct investment in Vietnam on household and individual welfare and on migration using survey data for the period 2002 to 2016. We find that higher revenue from foreign invested firms measured at province level and normalized on population is associated with a variety of positive outcomes. At household level, income and expenditures per capita are higher and poverty incidence is lower. At individual level, non-farm employment and wages are higher. And at commune level, in-migration is higher. However, although these improvements register as statistically signficant, the magnitudes in economic terms are modest.

Suggested Citation

  • Bui, Anh Tuan & Nguyen, Cuong Viet & Pham, Thu Phuong, 2019. "Impact of foreign investment on household welfare: Evidence from Vietnam," Journal of Asian Economics, Elsevier, vol. 64(C), pages 1-1.
    • Handle: RePEc:eee:asieco:v:64:y:2019:i:c:1
    DOI: 10.1016/j.asieco.2019.07.003
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    Cited by:

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    2. Dong, Zhixiao & Miao, Zhuang & Zhang, Yan, 2021. "The impact of China’s outward foreign direct investment on domestic innovation," Journal of Asian Economics, Elsevier, vol. 75(C).
    3. Nguyen, Dao Thi Hong, 2019. "Inward foreign direct investment and local wages: The case of Vietnam’s wholesale and retail industry," Journal of Asian Economics, Elsevier, vol. 65(C).

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    More about this item

    Keywords

    Economic integration; Foreign direct investment; Poverty; Household welfare; Vietnam;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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