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Spatial Impact of Foreign Direct Investment on Poverty Reduction in Vietnam

1
Faculty of Economics, National Economics University, Hanoi 10000, Vietnam
2
School of Banking and Finance, National Economics University, Hanoi 10000, Vietnam
3
Faculty of Economics, Vinh University, Vinh 43000, Vietnam
*
Author to whom correspondence should be addressed.
Academic Editors: Ştefan Cristian Gherghina and Shigeyuki Hamori
J. Risk Financial Manag. 2021, 14(7), 292; https://doi.org/10.3390/jrfm14070292
Received: 11 April 2021 / Revised: 4 June 2021 / Accepted: 16 June 2021 / Published: 25 June 2021
(This article belongs to the Section Financial Markets)
In this study, we analyze the spatial effect of foreign direct investment (FDI) on poverty reduction in Vietnam. This study uses the provincial-level panel data and the fixed-effects regression and the spatial econometric model to investigate empirically the impact of FDI on poverty reduction in Vietnam. The study finds that FDI has contributed to poverty reduction not only directly but also indirectly through human capital. However, FDI has indirectly worsened poverty through international trade. In addition, empirical results from the spatial econometric model show that FDI tends to decrease poverty in provinces. Finally, the study has some policy implications to decrease the negative effects of FDI on poverty reduction in Vietnam. View Full-Text
Keywords: foreign direct investment (FDI); poverty reduction; Vietnam foreign direct investment (FDI); poverty reduction; Vietnam
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MDPI and ACS Style

Do, Q.A.; Le, Q.H.; Nguyen, T.D.; Vu, V.A.; Tran, L.H.; Nguyen, C.T.T. Spatial Impact of Foreign Direct Investment on Poverty Reduction in Vietnam. J. Risk Financial Manag. 2021, 14, 292. https://doi.org/10.3390/jrfm14070292

AMA Style

Do QA, Le QH, Nguyen TD, Vu VA, Tran LH, Nguyen CTT. Spatial Impact of Foreign Direct Investment on Poverty Reduction in Vietnam. Journal of Risk and Financial Management. 2021; 14(7):292. https://doi.org/10.3390/jrfm14070292

Chicago/Turabian Style

Do, Quynh A., Quoc H. Le, Thanh D. Nguyen, Van A. Vu, Lan H. Tran, and Cuc T.T. Nguyen 2021. "Spatial Impact of Foreign Direct Investment on Poverty Reduction in Vietnam" Journal of Risk and Financial Management 14, no. 7: 292. https://doi.org/10.3390/jrfm14070292

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