A Study On The Relationship Between Trade And Foreign Direct Investment In Vietnam

This study aims to determine the long term relationship between inflows of foreign direct investment(FDI)with imports and exports of Vietnam by making use of Granger causality test.The empirical analysis presented in this paper is based on a recently released dataset for the period of the first quarter of 2000 to the end of quarter 2 of 2016.Statistical methods of the Augmented Dickey Fuller(ADF)unit root test,Engle-Granger cointegration test and Granger causality test are used in this study.The test results founded that there is a two-way linkage between FDI and international trade of Vietnam.