IMPACT ASSESSMENT OF FOREIGN DIRECT INVESTMENT (FDI) ON THE GRDP PER CAPITA OF VINH PHUC PROVINCE (2010-2022).
Foreign Direct Investment (FDI) is often seen as an important catalyst for economic growth in developing countries. It affects the economic growth of the host country by stimulating domestic investment, increasing human capital formation, and facilitating technology transfer. Gross Regional Domestic Product per capita is often considered the indicators to evaluate the contribution of FDI on the economy of a province.
The main purpose of the study is to investigate impacts of FDI on the Gross Regional Domestic Product per capita of Vinh Phuc province. The study uses annual data series for the period of 2010-2022. The relationship between FDI and GRDP per capita is analyzed by using Distributed-Lag models. The results of the study show positive and statistically insignificant relations between FDI inflows and the Gross Regional Domestic Product per capita respectively in Vinh Phuc. Policy recommendations are suggested in the light of the results obtained, regarding the FDI in the province.
Keywords: FDI, GRDP per capita, Vinh Phuc province.
