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Foreign Direct Investment (FDI) and Exports in a Developing Economy: Provincial Level Evidence From Vietnam
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Author(s): Thu Trang Phan (Thuongmai University, Vietnam), Thi Hong Ha Nguyen (Thuongmai University, Vietnam), Dung Tien La (Thuongmai University, Vietnam), Nguyen Thanh Thuy Duong (Thuongmai University, Vietnam)and Hoang Quynh Le (Thuongmai University, Vietnam)
Copyright: 2026
Volume: 17
Issue: 1
Pages: 21
Source title:
International Journal of Asian Business and Information Management (IJABIM)
Editor(s)-in-Chief: Patricia Ordóñez de Pablos (Universidad de Oviedo, Spain)
DOI: 10.4018/IJABIM.403998
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Abstract
This study examines the impact of key dimensions of foreign direct investment (FDI) on provincial exports in a developing economy context. Examining the population of 63 Vietnamese provinces in the period 2010–2023, the research, using a fixed-effects model with Driscoll–Kraay standard errors, reveals that FDI capital has a positive impact on provincial exports, while the number of FDI enterprises exerts a negative effect, highlighting the importance of investment quality over quantity. In contrast, FDI performance does not show a significant effect, suggesting that FDI profitability is not necessarily associated with provincial exports. Employment generated by FDI enterprises has a strong positive impact, underscoring the role of labor as a key transmission channel linking FDI with exports of Vietnamese provinces. These insights further support the FDI-led export perspective at the provincial level, highlighting the need for policies tailored to provincial contexts to enhance export competitiveness in Vietnam and other developing economies.
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