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Erscheinungsjahr: 
2023
Quellenangabe: 
[Journal:] Scientific Papers of the University of Pardubice, Series D: Faculty of Economics and Administration [ISSN:] 1804-8048 [Volume:] 31 [Issue:] 2 [Article No.:] 1689 [Year:] 2023 [Pages:] 1-11
Verlag: 
University of Pardubice, Pardubice
Zusammenfassung: 
This article aims to analyze the role of FDI and institutional quality in local economic growth in Vietnam. Using a dataset of 63 provinces in Vietnam between 2005 and 2020, the result of the Bayesian linear regression method cover that FDI has a negative effect on economic growth, while provinces have a negative effect on economic growth. High institutional quality (IQ) leads to high economic growth. Besides, the result of the article also shows that the interaction between FDI flows and institutional quality (FDIxIQ variable) positively impacts the economic growth of provinces in Vietnam. This implies that localities with good institutional quality will absorb FDI better. These findings suggest that policymakers should pay more attention to policies to attract FDI and improve institutional quality in order to promote sustainable GDP growth in the localities of Vietnam, thereby promoting the overall economic growth of Vietnam.
Schlagwörter: 
Bayesian Linear Regression
FDI
Economic growth
Institutional quality
Provinces of Vietnam
JEL: 
C11
F21
F43
O11
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