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

Cogent Economics & Finance

Thai-Ha Le¹ 

[1]RMIT University (Vietnam Campus)

关键词: economic distance;    trade;    foreign direct investment;    panel-corrected standard errors;    vietnam;   

DOI  :  10.1080/23322039.2017.1403108

来源: DOAJ

【 摘 要 】

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.

【 授权许可】

Unknown