MINISTRY OF EDUCATION AND TRAINING
NATIONAL ECONOMICS UNIVERSITY
TRIEU VAN HUAN
STUDYING MUTUAL EFFECTS BETWEEN
LOCALITIES IN THE RED RIVER DELTA IN
ATTRACTING FOREIGN DIRECT INVESTMENT
SPECIALITY: INVESTMENT ECONOMICS
CODE: 9310104
SUMMARY OF THE THESIS DOCTOR
HA NOI - 2021
THESIS WAS COMPLETED IN
NATIONAL ECONOMICS UNIVERSITY
Scientific instructor: Assoc.Prof.Dr. Pham Van Hung
Reviewer:
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2:
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Thesis was defended before the Thesis Judging Committee of
National Economics University
Entered in:
The thesis can be found at:
- National Library
- Library of National Economics University
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INTRODUCTION
1. The urgency of the thesis topic
In our country, there are currently 6 economic regions, each
economic region will have its own characteristics compared to other
economic regions. These characteristics may be regional advantages,
may also be regional difficulties. According to Decree No. 92/2006 /
ND-CP dated September 7, 2006, the Red River Delta includes 12
provinces and centrally-run cities: Hanoi, Ha Tay, Ninh Binh, Vinh
Phuc, Ha Nam, Bac Ninh, Hai Phong, Hung Yen, Hai Duong, Nam
Dinh, Thai Binh, Quang Ninh. According to Resolution No.
15/2008/QH12 dated 29/05/2008, Ha Tay was merged into Hanoi
from 01/8/2008. Thus, since August 1, 2008, the Red River Delta
includes 11 provinces and centrally-run cities. Over the past time, the
results of attracting FDI to localities in the Red River Delta have had
many positive highlights. As of December 31, 2019, the Region has
attracted 10.308 FDI projects, accounting for 33,32% of the total
number of FDI projects of the country. Registered FDI capital reached
106.601,06 billion USD, accounting for 29,27% of the registered FDI
capital of the country (Foreign Investment Department and author's
calculations). This is the second largest region in attracting FDI in the
country, only after the Southeast region. In the region, there are many
provinces and cities in the list of localities attracting the most FDI in
the country such as Hanoi, Bac Ninh, Hai Phong, Hai Duong.
However, not all localities in the Region have such positive results in
FDI attraction as some of the provinces mentioned above. If we
compare the number of FDI projects and the registered FDI capital of
the province that attracts the most and the province that attracts the
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least, the difference is very large. The number of FDI projects that
Hanoi attracts is 80,61 times higher than the number of FDI projects
that Ninh Binh attracts (5.965 out of 74 FDI projects). The registered
FDI capital that Hanoi attracts is 49,23 times higher than the
registered FDI capital that Thai Binh attracts (34.778,93 million USD
/706,43 million USD). So why is there such a big difference in FDI
attraction in a Region? What factors influence FDI attraction in a
province at the provincial level? Does the ability to attract FDI to a
province depend on factors in the neighboring province? Should
provinces in the region compete or support each other in attracting
FDI? What is the scientific basis for this recommendation?
Research on the mutual effects between localities in attracting
Foreign Direct Investment (FDI) has been studied by a number of
domestic and foreign scientists. These are the research of Coughlin
and Segev (2000; Kayam et al (2013); Blonigen et al (2007);
Garretsen and Peeters (2009); Nwaogu (2012); Gamboa (2012);
Hoang and Gujion (2014); Esiyok and Ugur (2015); Le and Nguyen
(2017). However, an overview of these studies shows that, on the one
hand, there are some theoretical issues about the inter-local influence
in a region in FDI attraction needs to be clarified. On the other hand,
the reality of attracting FDI in the provinces of the Red River Delta
has raised problems that need to be overcome in coordination and
linkage to attract FDI of localities. Therefore, studying the interaction
between localities in the Red River Delta region in attracting FDI
should be studied in order to complete the theory and solve practical
problems arising in the region. Stemming from the above reasons and
wishing to offer solutions to increase FDI attraction to localities in the
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Red River Delta, the author chose to study the thesis: "Studying
mutual effects between localities in the Red River Delta in attracting
foreign direct investment".
2. Objectives, questions and research tasks
2.1. Objectives of the study
- General objective
Studying mutual effects between localities in the Red River
Delta in attracting FDI. From the research results, the author proposes
a number of solutions so that the provinces can maximize the benefits
of FDI attraction of the Region through the mechanism of cooperation
and association instead of competing with each other as in the past.
- Specific target
+ Systematize, explain and supplement theoretical issues about
the mutual influence in FDI attraction.
+ Analyze the current situation of FDI in the Red River Delta
region in the period 1988-2019.
+ Analyze mutual effects among localities in the Red River Delta
in FDI attraction.
+ Propose a number of solutions to promote positive influences,
limit negative influences among localities in the Red River Delta in
FDI attraction.
2.2. Research question
- Are there any factors affecting to attract FDI to the localities in
the Red River Delta?
- Does the activity of attracting FDI to localities in the Red River
Delta depend on neighboring localities in the Region?
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- The general trend is that neighboring localities in the Red River
Delta will compete or support each other in attracting FDI?
- How is the impact of factors of localities in the Red River Delta
in attracting FDI? Which factors directly impact? What factors affect
indirectly? What factors affect the FDI attraction of the whole region?
- What major solutions should be taken to strengthen the linkages
and mutual support between localities in the Red River Delta in
attracting FDI?
2.3. Research tasks
- Overview of research papers in the country and abroad to study
the mutual influence between localities in attracting FDI. From there,
propose a research model of the thesis.
- Collect data from reliable sources for the research variables in
the model from the General Statistics Office, Statistical Office of the
provinces in the Red River Delta region.
- Test the research model of the thesis.
- Synthesize research results to answer research questions, to
meet research objectives.
3. Object and scope of the study
3.1. Research subjects
The object of the research of the topic is "the mutual influence
between localities in the Red River Delta in attracting FDI".
3.2. Research scope
- Scope of space: the research is conducted in the Red River
Delta region, Vietnam. For the locality studied in the topic, the author
is limited to the locality at the provincial level.
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- Scope of time: FDI data to the Red River Delta region was
collected and analyzed by the author in the period 1988-2019; data
used to analyze the research model was collected and analyzed by the
author in the period 2010-2018; propose solutions to implement until
2025.
- Scope of content: the thesis focuses on researching factors
affecting FDI attraction to a locality and between localities in the Red
River Delta in FDI attraction. At the same time, the author proposes
solutions to promote positive influences, limit negative influences
among localities in the Red River Delta in FDI attraction.
4. New contributions of the thesis
4.1. Contribution to theory
- The thesis contributes to the interpretation and completion of
theoretical issues about the mutual influence in FDI attraction.
- The thesis has selected the theory and research model of the
mutual effects between localities in FDI attraction of a region.
- The research results of the dissertation contribute to providing
empirical evidence on the influence between localities in FDI
attraction, in particular the mutual influence between localities in the
Red River Delta.
4.2. Contribution to practice
- The thesis is a valuable reference for postgraduate students,
graduate students, and scientists in the course of studying and
implementing related research later.
- The dissertation's research results provide a scientific basis for
proposing solutions to enhance cooperation and linkages among
localities in the Red River Delta in FDI attraction.
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5. The structure of the thesis
In addition to the introduction, conclusion and list of references,
the content of the thesis is presented in 4 chapters:
Chapter 1: Research overview and research method
Chapter 2: Theoretical basis for the mutal influence in attracting
foreign direct investment
Chapter 3: Analysis of the mutual influence between localities in
the Red River Delta in attracting foreign direct investment
Chapter 4: Solutions to promote positive effects and limit
negative effects among localities in the Red River Delta in attracting
FDI.
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Chapter 1
RESEARCH OVERVIEW AND RESEARCH METHODS
1.1. Study overview
1.1.1. Research overview related to the thesis
Previous studies when conducting the research on FDI attraction
can be divided into two directions: (1) Researching investment
environment or factors affecting FDI attraction of the country, of a
region, of a province. In these studies, the authors assume that
localities do not affect each other in the FDI attraction process; (2)
Studies on effects of nearby localities in FDI attraction. Studies on
effects of nearby localities in FDI attraction have been studied by a
number of domestic and foreign researchers. The main models used
by researchers are the SAR model, SEM model and SDM model.
However, these studies also draw conflicting conclusions. Besides, the
research scope in all provinces in a country has not shown the
"region" in FDI attraction. The author's research towards the second
research direction.
1.1.2. Research gap of the thesis
Through the process of reviewing research documents shows,
previous studies still have some contents that have not been clarified
or mentioned such as: (1) Not codified and explained the basic
theoretical issues about mutual influence between localities in FDI
attraction; (2) The scope of the study has not yet shown the "region" in
FDI attraction because the mutual effects in FDI attraction among
localities are most clearly shown in a certain scope (neighboring
provinces). near or within an area). Therefore, previous studies have
not built a research model of the mutual effects between localities in
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FDI attraction of a region; (3) In previous studies, the Pooled Mean
Group (PMG) analysis method has not been implemented to evaluate
the short-term and long-term impacts of the explanatory variables on
the dependent variable. This is necessary because there are
explanatory variables that can have a positive effect in the short term
but have a negative effect in the long run, or vice versa. Those are the
research gaps that are indicated for this study by the author.
1.2. The research process of the thesis
The author has built a research process of the thesis including 05
steps that are closely related to each other, namely: Determination of
research objectives; Study overview; Building a theoretical basis;
Analyze the mutual influence between localities and propose
solutions. In analyzing the situation of the interplay between localities
in the Red River Delta in attracting FDI, the author has concretized
the steps of quantitative analysis, which are: test Global Moran's I;
AIC inspection; Hausman test and Rho space delay coefficient;
regression to examine the impact of the influencing factors and PMG
regression. The research process of the thesis is an important content
for the author to follow sequentially in order to achieve the objectives
of the thesis.
1.3. Research methodology of the thesis
In the thesis, the author uses the following research methods:
Methods of data collection, statistical classification method,
descriptive statistical method, comparison method, expert method,
spatial regression method, method Pooled Mean Group.
