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Foreign Direct Investment and its Contributions to Economic Growth and Poverty Reduction in Vietnam (1986-2001)

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Thi Phuong Hoa Nguyen

During the 1990s, Vietnam experienced high economic growth, significant reduction in poverty and remarkable inflows of foreign direct investment. The book aims at examining impacts of foreign direct investment on economic growth and poverty reduction in Vietnam during 1986-2001 analytically and empirically. The triangulation methodology is used. Conclusions are that foreign direct investment contributed significantly to Vietnam’s growth and this worked mainly through capital accumulation and intra-industry spillover. Economic growth in turn reduced poverty. Direct impact of foreign direct investment on poverty was insignificant at the national level but significant in three localities where most foreign investors located. Foreign direct investment thus helped reduce poverty in Vietnam.
Contents: Motivations of foreign direct investors – Channels and models for growth and poverty effects of foreign direct investment – Foreign direct investment in Vietnam: motivations and profile – Qualitative and quantitative evidences on impacts of foreign direct investment on Vietnamese growth and poverty.