{"title":"Index of financial development with foreign direct investment: Case of Vietnam","authors":"Chinh Thi Nguyen, Chi Dieu Thi Nguyen, Van Do Bui","doi":"10.5709/ce.1897-9254.513","DOIUrl":null,"url":null,"abstract":"This study investigates the effect of the financial development index (FD) on foreign direct investment inflows (FDI) in Vietnam from 1996 to 2021. Time series data are used in the model to assess the influence of six indicators standing for FD. Financial institution assessment (FA), financial depth of institution (FDE), financial efficiency of the institution (FE), financial assessment of market (FM), financial efficiency of the market (FEM), domestic loans for the private sector (DLP) was collected from 1996 to 2021. As a result of the analysis, when FA, FE, and FEM increase, Vietnam's FDI inflow also increases while FDE and FM decrease FDI. The effect of DLP is unclear, and this study has no significant association. It is found that the selected financial development index has a significant impact on attracting inward FDI. It is also necessary for the government and officials to make appropriate policies in the future.","PeriodicalId":44824,"journal":{"name":"Contemporary Economics","volume":null,"pages":null},"PeriodicalIF":2.4000,"publicationDate":"2023-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Contemporary Economics","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.5709/ce.1897-9254.513","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
This study investigates the effect of the financial development index (FD) on foreign direct investment inflows (FDI) in Vietnam from 1996 to 2021. Time series data are used in the model to assess the influence of six indicators standing for FD. Financial institution assessment (FA), financial depth of institution (FDE), financial efficiency of the institution (FE), financial assessment of market (FM), financial efficiency of the market (FEM), domestic loans for the private sector (DLP) was collected from 1996 to 2021. As a result of the analysis, when FA, FE, and FEM increase, Vietnam's FDI inflow also increases while FDE and FM decrease FDI. The effect of DLP is unclear, and this study has no significant association. It is found that the selected financial development index has a significant impact on attracting inward FDI. It is also necessary for the government and officials to make appropriate policies in the future.
期刊介绍：
The mission of the Contemporary Economics is to publish advanced theoretical and empirical research in economics, finance, accounting and management with the noticeable contribution and impact to the development of those disciplines and preferably with practice relevancies. All entirety of methods is desirable, including a falsification of conventional understanding, theory building through inductive or qualitative research, first empirical testing of a theory, meta-analysis with theoretical implications, constructive replication that clarifies the boundaries or range of a theory for theoretical research as well as qualitative, quantitative, field, laboratory, meta-analytic, and combination for an empirical research. This clear priority for comprehensive manuscripts containing a methodology-based theoretical and empirical research with implications and recommendations for policymaking does not exclude manuscripts entirely focused on theory or methodology. Manuscripts that raise significant, actual topics of international relevance will be highly appreciated. The interdisciplinary approach including – besides economic, financial, accounting or managerial –also other aspects, is welcomed.
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