Does economic distance affect the flows of trade and foreign direct investment? Evidence from Vietnam

Le, T 2017, 'Does economic distance affect the flows of trade and foreign direct investment? Evidence from Vietnam', Cogent Economics and Finance, vol. 5, 1403108, pp. 1-14.


Document type: Journal Article
Collection: Journal Articles

Title Does economic distance affect the flows of trade and foreign direct investment? Evidence from Vietnam
Author(s) Le, T
Year 2017
Journal name Cogent Economics and Finance
Volume number 5
Article Number 1403108
Start page 1
End page 14
Total pages 14
Publisher Cogent OA
Abstract This study examines the effect of relative economic distance (RED) between countries on bilateral foreign trade and foreign direct investment (FDI), using Vietnam as a case study. The difference in per-capita GDP is used as proxy for the RED between Vietnam and her partner countries. Modified gravity models are estimated using the procedure of panel-corrected standard errors (PCSE). The results indicate that there is a feedback and significantly positive relationship between Vietnam's trade and FDI inflows. The economic distance between Vietnam and her partner countries has a significantly positive influence on the country's bilateral trade and FDI inflows.
Subject Economic Development and Growth
Panel Data Analysis
Keyword(s) economic distance
trade
foreign direct investment
panel-corrected standard
Copyright notice © 2017 The Author(s). Creative Commons Attribution 4.0 License.
ISSN 2332-2039
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