Open AccessThe relationships between foreign direct investment, export and economic growth
Author(s) -
Duy Nguyen,
Luu Cuong Tran,
Thi Ngoc Han Bui,
Thi Thanh Thuy Ngo,
Thi Kim Oanh Nguyen
Publication year - 2021
Publication title -
accounting
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.175
H-Index - 5
eISSN - 2369-7407
pISSN - 2369-7393
DOI - 10.5267/j.ac.2021.3.028
Subject(s) - foreign direct investment , granger causality , error correction model , gross domestic product , causality (physics) , incentive , economics , vector autoregression , investment (military) , international economics , international trade , macroeconomics , econometrics , cointegration , political science , market economy , physics , quantum mechanics , politics , law
This study aims to examine the causal relationship between foreign direct investment, exports and economic growth in Dong Nai province, Vietnam from 1999 to 2019. The study uses several economic models such as Vector Auto Regression - VAR (p), Vector Error Correction Model (VECM) and Granger causality tests to evaluate relationships between research model variables. The results show that foreign direct investment and exports have the positive effects on Gross Regional Domestic Product (GRDP). Therefore, this study recommends some policy implementation to simulate the foreign direct investment. Particularly, the policy makers in Dong Nai province should be aware of the role of foreign direct investment and export incentive policies, which is an important driving force for the socio-economic development of Dong Nai province, Vietnam.