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Determinants of foreign direct investment in Southern Central Coast of Vietnam: a spatial econometric analysis

Author

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  • Hong Hiep Hoang

    (Vietnam Academy of Social Sciences)

  • Cong Minh Huynh

    (Eastern International University (EIU))

  • Nguyen Minh Huy Duong

    (University of Economics, The University of Da Nang)

  • Ngoc Hoe Chau

    (Vietnam Academy of Social Sciences)

Abstract

This paper examines the determinants of foreign direct investment in the Southern Central Coast (SCC) region of Vietnam over the period 2007–2016 by a spatial econometric approach. The estimation results show that FDI inflows in the SCC region are attracted by the cheap labor cost of the host province, and provinces that own national seaports have great advantages in attracting FDI, confirming the vertical FDI form in the SCC region. Interestingly, skilled labor force in the surrounding provinces has a positive impact on FDI inflows in the host province. In particular, regarding the role of local institutional quality, the estimation shows that the legal institutions and level of social security in the host province play important roles in attracting FDI.

Suggested Citation

  • Hong Hiep Hoang & Cong Minh Huynh & Nguyen Minh Huy Duong & Ngoc Hoe Chau, 2022. "Determinants of foreign direct investment in Southern Central Coast of Vietnam: a spatial econometric analysis," Economic Change and Restructuring, Springer, vol. 55(1), pages 285-310, February.
    • Handle: RePEc:kap:ecopln:v:55:y:2022:i:1:d:10.1007_s10644-020-09315-3
    DOI: 10.1007/s10644-020-09315-3
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    3. Thi-Nham Le & Thanh-Tuan Dang, 2024. "Performance Analysis of Vietnamese Provinces’ FDI Attractiveness: An Application of DEA and Malmquist Indexes," SAGE Open, , vol. 14(3), pages 21582440241, July.
    4. Anbalagi Andy & Aida Idris & Rajenthyran Ayavoo, 2024. "Location Attractiveness in the New Norm: A Systematic Review," SAGE Open, , vol. 14(3), pages 21582440241, September.
    5. Hamid Jafarzadeh & Dongfeng Yang, 2023. "Impacts of the Belt and Roads Initiative on Sustainability: Local Approaches to Spatial Restructuring in the Aras Special Economic Zones," Sustainability, MDPI, vol. 15(16), pages 1-20, August.
    6. Thi-Nham Le & Thanh-Tuan Dang, 2022. "An Integrated Approach for Evaluating the Efficiency of FDI Attractiveness: Evidence from Vietnamese Provincial Data from 2012 to 2022," Sustainability, MDPI, vol. 14(20), pages 1-25, October.

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    More about this item

    Keywords

    FDI; Local institutions; Region; Spatial econometrics; Vietnam;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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