Causality relationship between foreign direct investment, trade and economic growth in Vietnam
Using quarterly time series data from 1988 to 2005, this paper examines the causality relationship between foreign direct investment, international trade and economic growth in Vietnam. In VAR model, the integration and co-integration analysis suggested that there is a long run relationship among...
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| Main Author: | |
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| Format: | Conference or Workshop Item |
| Language: | English |
| Published: |
2007
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| Subjects: | |
| Online Access: | http://repo.uum.edu.my/2569/1/Thu_Thi_Hoang.pdf http://repo.uum.edu.my/2569/ |
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| Summary: | Using quarterly time series data from 1988 to 2005, this paper examines the causality
relationship between foreign direct investment, international trade and economic
growth in Vietnam. In VAR model, the integration and co-integration analysis
suggested that there is a long run relationship among the factors. The results of
VECM causality test find bidirectional causality between foreign direct investment,
export and economic growth, with uni-direction of import to export and FDI. The
paper concludes that FDI invested in Vietnam was attracted by its economic growth
and its foreign trade strategy. Moreover, FDI and trade are two important factors that enhance the affect of economic growth in Vietnam. |
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