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11 (2) 2021

Does FDI inflow crowd in private investment? Empirical evidence for the Southeast region of Vietnam from the panel quantile regression approach


Author - Affiliation:
Nguyen Van Bon - Faculty of Finance - Banking, University of Finance - Marketing , Vietnam
Corresponding author: Nguyen Van Bon - nv.bon@ufm.edu.vn
Submitted: 14-04-2021
Accepted: 15-06-2021
Published: 14-08-2021

Abstract
Well-known to be the most dynamic economic region in Vietnam with the establishment of more export processing zones, high technology parks, and industrial zones, the Southeast region is increasingly attracting more capital flows from all over the world. Does FDI inflow crowd in private investment in this region? To answer this research question, the study examines the effect of FDI inflow on private investment for a sample of 6 provinces/cities of the Southeast region between 2005 and 2019 using the panel quantile regression approach, the difference GMM Arellano-Bond, and the FE-IV estimator. The results show that FDI inflow crowds in private investment in this region. In addition, public expenditure, inflation, and population also promote private investment. These findings suggest some crucial policy implications for local governments in this region to receive more FDI inflows as well as promote private investment.

Keywords
FDI inflows; panel quantile regression; private investment; Southeast region of Vietnam

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Cite this paper as:

Nguyen, V. B. (2021). Does FDI inflow crowd in private investment? Empirical evidence for the Southeast region of Vietnam from the panel quantile regression approach. Ho Chi Minh City Open University Journal of Science – Economics and Business Administration, 11(2), 127-136. doi:10.46223/HCMCOUJS.econ.en.11.2.1802.2021


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DOI: https://doi.org/10.46223/HCMCOUJS.econ.en.11.2.1802.2021
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