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Causality relationship between foreign direct investment, trade and economic growth in Vietnam


Thu, Thi Hoang (2007) Causality relationship between foreign direct investment, trade and economic growth in Vietnam. In: International Economic Conference on Trade and Industry (IECTI) 2007, 3 - 5 December 2007, Bayview Hotel Georgetown, Penang. (Unpublished)

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Abstract

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.

Item Type: Conference or Workshop Item (Paper)
Additional Information: Organized by Faculty of Economics, Universiti Utara Malaysia
Uncontrolled Keywords: foreign direct investment, trade, economic growth, Granger causality and Vietnam
Subjects: H Social Sciences > HF Commerce
Divisions: College of Arts and Sciences
Depositing User: Mrs. Juwita Johari
Date Deposited: 24 Feb 2011 01:08
Last Modified: 24 Feb 2011 01:42
URI: http://repo.uum.edu.my/id/eprint/2569

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