IMPACT OF FDI AND ITERNATIONAL TRADE ON ECONOMICS GROWTH IN VIETNAM

Abstract

International trade and foreign direct investment (FDI) are often regarded as catalysts to facilitate economic growth and integration of nations to the world economy. This study investigates the relationship between foreign direct investment, international trade, gross capital formation and Vietnam's GDP growth rate from 1990 to 2017. Based on Johansen cointegration test and the vector error correction model (VECM) shows a long - run relationship between these variables. The variables of foreign direct investment, international trade and gross capital formation have a significant impact on GDP growth in Vietnam.