Research On The Impact Of FDI On Vietnam's Economic Growth

With the acceleration of globalization and integration,FDI has become more and more obvious to the economic growth of developing countries.Countries are constantly revising their foreign policies while using various methods to attract more foreign direct investment,and Vietnam is no exception.Since the reform and opening up in 1986,Vietnam has been trying to attract foreign investment,so its FDI as a proportion of GDP is very large,and its economy has been developing rapidly with the inflow of FDI.FDI has also made up for many technical deficiencies by bringing in advanced technology and managerial expertise while filling the gap in the country's funding gap.But a lot of scholars in the study of Vietnam's economic growth are focus on agriculture(because Vietnam is an agricultural country),and ignore the influence of FDI on economic growth,so to study the effect of FDI on economic growth is of great practical significance.Taking Vietnam as an example,this paper studies the influence of FDI on economic growth in developing countries.Firstly,this paper introduces the economic development of Vietnam and the development of FDI,and then discusses the relationship between FDI and economic development.On the research methods,selection of gross domestic product(GDP)and foreign direct investment(FDI),the total amount of capital formation,the total import and export,industrial added value as variables,using econometric software(ADF)implementing stationarity test and Granger causality test,so as to find out whether there is a causal relationship between them and the long-term stable equilibrium relationship.It is known from the measurement results that both the GDP and FDI of Vietnam are the order sequence of orders,and there is a relationship of cointegration between the two,that is,there is a long-term equilibrium relationship between variables.Finally,from the perspective of FDI,the policy Suggestions for promoting national economic growth are proposed.