The Impact of Foreign Direct Investment, Innovation, and Institutions on Economic Growth in Vietnam

Abstract

This study was conducted to identify and evaluate the impact of foreign direct investment, innovation and institutions on Vietnam's economic growth. This study uses the Error Correction Vector Model (VECM) estimation method and Johansen integrated co-analysis to analyze the short- and long-term impacts of foreign direct investment, innovation and institutions on Vietnam's economic growth in the period 2002 – 2022. The quantitative findings indicate that, in both the short term and the long term, FDI exerts a negative impact on economic growth, while innovation and institutional quality positively contribute to economic growth in Vietnam