Impact of Foreign Direct Investment on Economic Growth in Bac Giang

Abstract

In recent years, foreign direct investment (FDI) has played an important role in Bac Giang province's economic growth and socioeconomic development. The goal of this article is to study the relationship between FDI and economic growth of Bac Giang. We use Vector Autorewardsion (VAR) to analyze the influence of the province’s FDI on its economic growth over the period from 2010 to 2020. The result partly shows that the FDI has a reasonably rapid and broad impact on the province's economic growth. 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 growth in the future.

Keywords: Foreign Direct Investment, Bac Giang, Economic Development, VAR

DOI: 10.7176/EJBM/14-8-01

Publication date: April 30^th 2022