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<p>This study investigates the impact of foreign capital inflows on poverty in Vietnam, using annual time series data from 1990 to 2018. The study was motivated by the need to establish if burgeoning foreign capital inflows in Vietnam can support the poverty alleviation agenda. Foreign direct investment (FDI) and external debt were used as proxies for foreign capital inflows; and infant mortality rate, Human Development Index (HDI) and household consumption expenditure were used as poverty proxies. Using the autoregressive distributed lag (ARDL) approach, the study found foreign direct investment to reduce poverty in the short run and long run when household consumption expenditure was used as a poverty measure. However, the study found FDI to worsen poverty in the short run when infant mortality rate and HDI were used as poverty proxies. The study found external debt to have poverty mitigating effect in the short run regardless of the poverty measure used and in the long run only when household consumption expenditure was used as a poverty measure.</p>
</abstract>

This study investigates the impact of foreign capital inflows on poverty in Vietnam, using annual time series data from 1990 to 2018. The study was motivated by the need to establish if burgeoning foreign capital inflows in Vietnam can support the poverty alleviation agenda. Foreign direct investment (FDI) and external debt were used as proxies for foreign capital inflows; and infant mortality rate, Human Development Index (HDI) and household consumption expenditure were used as poverty proxies. Using the autoregressive distributed lag (ARDL) approach, the study found foreign direct investment to reduce poverty in the short run and long run when household consumption expenditure was used as a poverty measure. However, the study found FDI to worsen poverty in the short run when infant mortality rate and HDI were used as poverty proxies. The study found external debt to have poverty mitigating effect in the short run regardless of the poverty measure used and in the long run only when household consumption expenditure was used as a poverty measure.

The impact of foreign capital inflows on poverty in Vietnam: An empirical investigation

Croatian Review of Economic, Business and Social Statistics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

This study investigates the impact of foreign capital inflows on poverty in Vietnam, using annual time series data from 1990 to 2018. The study was motivated...

The impact of foreign capital inflows on poverty in Vietnam: An empirical investigation

Published Online: Dec 23, 2021

Page range: 31 - 49

Received: Jul 13, 2021

Accepted: Sep 28, 2021

DOI: https://doi.org/10.2478/crebss-2021-0008

Keywords
autoregressive distributed lag (ARDL), external debt, foreign direct investment, poverty, Vietnam

© 2021 Mercy T. Musakwa et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

The impact of foreign capital inflows on poverty in Vietnam: An empirical investigation

Published Online: Dec 23, 2021

Page range: 31 - 49

Received: Jul 13, 2021

Accepted: Sep 28, 2021

DOI: https://doi.org/10.2478/crebss-2021-0008

Keywordsautoregressive distributed lag (ARDL), external debt, foreign direct investment, poverty, Vietnam

© 2021 Mercy T. Musakwa et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
autoregressive distributed lag (ARDL), external debt, foreign direct investment, poverty, Vietnam