THE IMPACT OF MACROECONOMIC FACTORS ON ATTRACTING FDI IN BINH DUONG PROVINCE

  • Đặng Văn Cường
Keywords: macroeconomic factors, attracting FDI, co-integration, ECM

Abstract

The paper tends to find empirical evidence on local macroeconomic factors of Binh Duong province affecting FDI inflows into the province. Through series data in the period 1997 - 2020, the article uses the co-integration analysis method and the error correction model (ECM) to estimate the impact results of these macro factors. The estimation results show that the province's annual gross product (GDP) and provincial public investment have a positive effect on FDI inflows both in the short and long term. Meanwhile, the population of the province has a negative impact on FDI in the short and long term. And the ECM result also shows that about 121.18% of the difference between the real value and the long-term value of FDI inflows (or the equilibrium value of FDI inflows) is adjusted every year.

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Published
2021-09-10
Section
Bài viết