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The long-term effects of war on foreign direct investment and economic development: evidence from Vietnam

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  • Nguyen, Cuong Viet
  • Tran, Tuyen Quang
  • Van Vu, Huong

Abstract

In this study, we find a negative effect of unexploded ordnance (UXO) on the geographical density of foreign direct investment and large firms in Vietnam. A 1 % increase in the proportion of UXO-contaminated areas leads to a 0.69 % relative decrease in the density of FDI firms within districts. Point estimates for the elasticity of the density of joint-venture FDI firms and state-owned enterprises (SOEs) due to UXO are smaller, equal to -0.56 and -0.36. Moreover, we also find that a 1 % increase in the proportion of UXO-contaminated areas leads to a 0.38 % relative decrease in the intensity of nighttime light.

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  • Nguyen, Cuong Viet & Tran, Tuyen Quang & Van Vu, Huong, 2024. "The long-term effects of war on foreign direct investment and economic development: evidence from Vietnam," Journal of Urban Economics, Elsevier, vol. 143(C).
    • Handle: RePEc:eee:juecon:v:143:y:2024:i:c:s0094119024000500
    DOI: 10.1016/j.jue.2024.103680
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    More about this item

    Keywords

    War; FDI; Unexploded ordnance; Local development; Vietnam;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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