Does economic distance affect the flows of trade and foreign direct investment? Evidence from Vietnam
Does economic distance affect the flows of trade and foreign direct investment? Evidence from Vietnam
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DOI:
10.1080/23322039.2017.1403108
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发表时间:
2017-01
影响因子:
1.9
通讯作者:
Thai‐Ha Le
中科院分区:
文献类型:
--
作者:
Thai‐Ha Le
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.