Impact of Foreign Direct Investment on Economic Restructuring in Bac Ninh

Abstract

In recent years, foreign direct investment (FDI) has played an important role in Bac Ninh’s economic restructuring. Of all provinces, Bac Ninh has always been leading the way for attracting foreign investment in Vietnam. The goal of this article is to study the relationship between FDI and the structure of economy of Bac Ninh. We use Ordinary Least Squares regression (OLS) to analyze the influence of the province’s FDI on its economic restructuring over the period from 2009 to 2019. The result partly shows that the FDI has had a strong impact on Bac Ninh’s economic restructuring in both speed and quality. Through these findings, we propose several recommendations for the local authorities to continue to attract the FDI and reinforce the positive impacts of the FDI on the province’s economic restructuring in the future.

Keywords: Bac Ninh, foreign direct investment (FDI), economic restructuring, OLS

DOI: 10.7176/EJBM/12-15-03

Publication date:May 31^st 2020