Two-way relationship between FDI and Vietnam's economic growth during 1986-2012

Abstract

This paper examines the two-way relationship between foreign direct investment (FDI) and economic growth in Vietnam from 1986 to 2012, using the 2SLS, 3SLS / GMM method with time series data National level from 1986 to 2012 and give the following results. First, FDI and economic growth have a positive two-way relationship. Secondly, the major impact on growth is the average labor growth rate of the total population and total domestic investment. Third, the most influential factor in attracting FDI is the size of the market as well as the openness of the economy.