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The relationship between foreign direct investment, current account and economic growth in Vietnam: A framework for international capital flow management

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This study evaluates the relationship between foreign direct investment, current account, and economic growth in Vietnam. Using the VECM method, the research results have shown that FDI and current accounts positively affect Vietnam’s economic growth in both the short and long term. The novelty of this paper is that the authors have done the robustness test through the Bayesian stability test. Based on research results, we propose policy implications to minimize the negative effects of FDI inflows and make the most of this capital source for Vietnams sustainable economic development.
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The relationship between foreign direct investment, current account and economic growth in Vietnam: A framework for international capital flow management

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