Impact of direct foreign investment flows on economic growth: The role of the transparency of economy


Authors

  • Vu Duc Kien Academy of Finance
DOI: https://doi.org/10.57110/vnu-jeb.v5i5.413

Keywords:

Transparency, FDI, economic growth

Abstract

This study examines the impact of foreign direct investment (FDI) flows on economic growth under the influence of transparency. Using data of Southeast Asian countries from 2013 to 2022, the study shows that foreign direct investment flows has a positive impact on the economic growth. On average, when the ratio of FDI to gross domestic product (GDP) increases by 0.1, GDP and GDP per capita increase by about 0.07%, and when FDI capital increases by 1%, GDP and GDP per capita increase by about 0.07%. The regression results also show that the impact of FDI on growth depends on the level of transparency of the economy. In the case of zero economic transparency, FDI flows have no impact or even a negative impact on growth. The higher the level of transparency, the greater the positive impact of FDI on economic growth.

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Published

25-10-2025

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How to Cite

Vu Duc Kien. (2025). Impact of direct foreign investment flows on economic growth: The role of the transparency of economy. VNU JOURNAL OF ECONOMICS AND BUSINESS, 5(5), 69. https://doi.org/10.57110/vnu-jeb.v5i5.413

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