The Economics of Transition
Volume 16 Issue 2 Page 183-197, April 2008
Foreign direct investment and ex****ts
The experiences of Vietnam1
Nguyen Thanh Xuan* *School of Economics, The University of New South
Wales, Sydney, NSW, Australia. E-mail:
thanh.nguyen@[EMAIL PROTECTED]
and Yuqing Xing** **International
Development Program, Graduate School of International Relations,
International University of Japan, Niigata-ken, Japan. E-mail:
xing@[EMAIL PROTECTED]
examined the implementation statuses of a total of 5,919 foreign
direct investment (FDI) projects approved by the Vietnamese Ministry
of Planning and Investment since 1988, and compiled a database of
actually disbursed FDI in Vietnam. The database covers FDI flows into
Vietnam from 23 countries from 1990 to 2004. Using the data, we
analyzed the impact of FDI on the ex****ts of Vietnam with gravity
equations. The empirical results demonstrate that FDI is one of the
major factors driving the rapid ex****t growth of Vietnam. It has
significantly facilitated the expansion of Vietnam's ex****ts to FDI
source countries. In particular, the empirical analysis shows that a 1
percent increase in FDI inflows will be expected to give rise to a
0.13 percent increase in Vietnam's ex****ts to these countries.
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