Inward Foreign Direct Investment and Trade Openness in Vietnam: A Nonlinear Autoregressive Distributed Lag Approach

Jen-Yao Lee; Ya-Chuan Hsiao; Ngochien Bui; Tien-Thinh Nguyen

doi:10.3390/economies9030120

Economies (Aug 2021)

Inward Foreign Direct Investment and Trade Openness in Vietnam: A Nonlinear Autoregressive Distributed Lag Approach

Jen-Yao Lee,
Ya-Chuan Hsiao,
Ngochien Bui,
Tien-Thinh Nguyen

Affiliations

Jen-Yao Lee: Department of International Business, National Kaohsiung University of Science and Technology, Kaohsiung 82445, Taiwan
Ya-Chuan Hsiao: Department of International Business, National Kaohsiung University of Science and Technology, Kaohsiung 82445, Taiwan
Ngochien Bui: Department of International Business, National Kaohsiung University of Science and Technology, Kaohsiung 82445, Taiwan
Tien-Thinh Nguyen: Department of International Business, National Kaohsiung University of Science and Technology, Kaohsiung 82445, Taiwan

DOI: https://doi.org/10.3390/economies9030120
Journal volume & issue: Vol. 9, no. 3
p. 120

Abstract

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This study aims to examine the asymmetric relationship between trade openness and FDI (foreign direct investment) inflows to Vietnam by using NARDL (nonlinear autoregressive distributed lag) during the period from 1997 to 2019. Our findings show that the influence of FDI on trade openness is asymmetric in the short-run and long-run. But the influence of trade openness on FDI is symmetric in the short-run and asymmetric in the long run.

Published in Economies

ISSN: 2227-7099 (Online)
Publisher: MDPI AG
Country of publisher: Switzerland
LCC subjects: Social Sciences: Economic theory. Demography: Economics as a science
Website: http://www.mdpi.com/journal/economies

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