CEU Electronic Theses and Dissertations, 2020
| Author | Nguyen, Quynh |
|---|---|
| Title | The impact of the US-China trade war on Foreign Direct Investment inflows of Vietnam |
| Summary | This thesis seeks to examine the impacts of the US-China trade war on FDI inflows of Vietnam. To test the impact of the trade war and other determinants of FDI, an econometrics analysis is carried out based on a panel data containing information on bilateral FDI and a set of macroeconomics variables from 2007 to 2019 of Vietnam and ten main FDI investing partners. An augmented gravity model is used with the Fixed effects model estimation method. The findings show that the trade war between the US and China increases FDI inflows of Vietnam by 0.57 percent. Besides that, other determinants such as GDP, distance, real exchange rate have a significantly negative influence on FDI inflows of Vietnam. On the other hand, GDP per capita and export have significantly positive impacts. These findings suggest that a policy set should be designed and combined to increase the FDI inflows into Vietnam. In order to attract more foreign investments, the government should desire policies to restructure the economy, improve infrastructure, boost labor productivity, and support domestic firms. The government also needs to follow every move made by the US and China to have proper policies for all possibilities during the trade tension, especially to cope with undesirable investments from China. |
| Supervisor | István Kónya |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2020/nguyen_quynh02.pdf |
Visit the CEU Library.
© 2007-2021, Central European University