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Provincial foreign direct investment absorptive capacity of Vietnam

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dc.title Provincial foreign direct investment absorptive capacity of Vietnam en
dc.contributor.author Vu, Hoang Duong
dc.contributor.author Ho, Thanh Tri
dc.relation.ispartof Entrepreneurial Business and Economics Review
dc.identifier.issn 2353-883X Scopus Sources, Sherpa/RoMEO, JCR
dc.date.issued 2020
utb.relation.volume 8
utb.relation.issue 2
dc.citation.spage 7
dc.citation.epage 26
dc.type article
dc.language.iso en
dc.publisher Cracow University of Economics
dc.identifier.doi 10.15678/EBER.2020.080201
dc.relation.uri https://eber.uek.krakow.pl/index.php/eber/article/view/611
dc.relation.uri https://eber.uek.krakow.pl/index.php/eber/article/download/611/599
dc.subject absorptive capacity en
dc.subject openness en
dc.subject financial development en
dc.subject the absorptive capacity of domestic firms en
dc.description.abstract Objective: The objective of the article is to examine the importance of absorptive capacity in the relationship between foreign direct investment and economic performance in 63 Vietnamese provinces from 2007 to 2015. Research Design & Methods: The absorptive capacity at provincial level includes six components tested by confirmatory factor analysis, which allows for the argument that absorptive capacity of domestic firms is an important component of absorptive capacity of provinces. Besides this one, there are five other components, including financial development, human capital, the level of openness, the absorptive capacity of domestic firms, institutions, and infrastructure. The generalized two-stages least squares (G2SLS) random effect with instrumental variables regression is used with panel data. Findings: Firstly, foreign direct investment has a positive impact on the development of the 63 provinces in Vietnam. Secondly, among the six components, the four most important ones are infrastructure, the level of openness, human capital, and the absorptive capacity of domestic firms. Moreover, the article finds that foreign direct investment can bring negative impacts to provinces with a low level of trade openness. Implications & Recommendations: The government should focus on infrastructure, trading policy, human capital and capability of domestic firms. Contribution & Value Added: There is a lack of connection between absorptive capacity at the firm level and the macro level. Therefore, this article attempts to create this connection by constructing absorptive capacity at the firm level as a component of absorptive capacity at the provincial level. © 2020, Cracow University of Economics. All rights reserved. en
utb.faculty Faculty of Management and Economics
dc.identifier.uri http://hdl.handle.net/10563/1009808
utb.identifier.obdid 43882105
utb.identifier.scopus 2-s2.0-85087341461
utb.identifier.wok 000601167300001
utb.source j-scopus
dc.date.accessioned 2020-07-29T07:30:40Z
dc.date.available 2020-07-29T07:30:40Z
dc.description.sponsorship [IGA/FaME/2018/019 FDI]
dc.rights Attribution-NoDerivatives 4.0 International
dc.rights.uri https://creativecommons.org/licenses/by-nd/4.0/
dc.rights.access openAccess
utb.contributor.internalauthor Vu, Hoang Duong
utb.contributor.internalauthor Ho, Thanh Tri
utb.fulltext.affiliation Vu Hoang Duong, Ho Thanh Tri PhD student at the Tomas Bata University in Zlin, Czech Republic; Researcher at the Vietnam Institute of Economics, Vietnam Academy of Social Sciences, Vietnam. His research interests include foreign direct investment, poverty, and political participation. PhD student at the Tomas Bata University in Zlin, Czech Republic; Researcher at the Industrial University of Ho Chi Minh city, Vietnam. His research interests include foreign direct investment and financial systems.
utb.fulltext.dates Received: 28 July 2019 Revised: 17 April 2020 Accepted: 22 April 20202
utb.fulltext.sponsorship This work is supported by the project No. IGA/FaME/2018/019 FDI absorptive capacity and the factor determining FDI flows in developing countries of Asia and Africa.
utb.wos.affiliation [Duong Hoang Vu; Tri Thanh Ho] Tomas Bata Univ Zlin, Nam TG Masaryka 5555, Zlin 76001, Czech Republic; [Duong Hoang Vu] Vietnam Acad Social Sci, Vietnam Inst Econ, Hanoi, Vietnam; [Tri Thanh Ho] Ind Univ Ho Chi Minh City, Ho Chi Minh City, Vietnam
utb.scopus.affiliation Tomas Bata University in Zlin, Czech Republic; Vietnam Institute of Economics, Vietnam Academy of Social Sciences, Viet Nam; Industrial University of Ho Chi Minh city, Viet Nam
utb.fulltext.projects IGA/FaME/2018/019
utb.identifier.jel F14
utb.identifier.jel F23
utb.identifier.jel F62
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