The Long-Term Effects of War on Foreign Direct Investment and Economic Development: Evidence from Vietnam

Cuong Nguyen, Tuyen Tran and Huong Van Vuc

No 1047, GLO Discussion Paper Series from Global Labor Organization (GLO)

Abstract: In this study, we find that the negative effect of unexploded ordnance (UXO) on the geographical density of foreign direct investment and large firms is a new channel through which the war legacy impedes local development in Vietnam. A 1% increase in the proportion of UXO-contaminated area leads to a 0.78% relative decrease in the density of FDI firms within districts. Point estimates for the elasticity of the density of joint-venture FDI firms and state-owned enterprise (SOEs) due to UXO are smaller, equal to -0.56 and -0.54. Consequently, a 1% increase in the proportion of UXO-contaminated areas leads to a 0.46% relative decrease in the intensity of nighttime light.

Keywords: War; FDI; unexploded ordnance; local development; Vietnam (search for similar items in EconPapers)
JEL-codes: O12 O15 R12 (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-ban, nep-dev, nep-geo, nep-int, nep-sea and nep-tra
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https://www.econstor.eu/bitstream/10419/249589/1/GLO-DP-1047.pdf (application/pdf)

Related works:
Journal Article: The long-term effects of war on foreign direct investment and economic development: evidence from Vietnam (2024)
Working Paper: The Long-Term Effects of War on Foreign Direct Investment and Economic Development: Evidence from Vietnam (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:glodps:1047

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