Index of Financial Development with Foreign
Direct Investment: Case of Vietnam
Index of Financial Development with Foreign
Direct Investment: Case of Vietnam
Author(s): Chinh Thi Nguyen, Chi Dieu Thi Nguyen, Van Do BuiSubject(s): National Economy, Supranational / Global Economy, International relations/trade, Public Finances, Socio-Economic Research
Published by: VIZJA University
Keywords: financial development; financial development index; foreign direct investment; Vietnam;
Summary/Abstract: This study investigates the effect of the financial development index (FD) on foreign direct investment inflows(FDI) in Vietnam from 1996 to 2021. Time series data are used in the model to assess the influence of sixindicators standing for FD. Financial institution assessment (FA), financial depth of institution (FDE), financialefficiency of the institution (FE), financial assessment of market (FM), financial efficiency of the market (FEM),domestic loans for the private sector (DLP) was collected from 1996 to 2021. As a result of the analysis, whenFA, FE, and FEM increase, Vietnam's FDI inflow also increases while FDE and FM decrease FDI. The effect of DLPis unclear, and this study has no significant association. It is found that the selected financial developmentindex has a significant impact on attracting inward FDI. It is also necessary for the government and officials tomake appropriate policies in the future.
Journal: Contemporary Economics
- Issue Year: 17/2023
- Issue No: 3
- Page Range: 323-332
- Page Count: 10
- Language: English
