Social and Economic Geography
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Social and Economic Geography. 2020, 5(1), 1-6
DOI: 10.12691/seg-5-1-1
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Influence of Foreign Direct Investment on Tourism Development: An evidence from Vietnam

Vo Thi Van Khanh1,

1Department of Business Administration, Academy of Finance, Hanoi, Vietnam

Pub. Date: February 21, 2020

Cite this paper:
Vo Thi Van Khanh. Influence of Foreign Direct Investment on Tourism Development: An evidence from Vietnam. Social and Economic Geography. 2020; 5(1):1-6. doi: 10.12691/seg-5-1-1


The purpose of this paper is to investigate the effects of Foreign Direct Investment on Tourism Development in Vietnam. Using an autoregressive distributed lag model (ARDL model) on the data during the period over 2003-2017, collected from World Development Indicators, Department of Statistics in Vietnam. Evidence from the study shows that Foreign Direct Investment and Tourism Development are co-integrated and have a long-run equilibrium relationship. Our results demonstrate that in both short run and long run, Foreign Direct Investment shows a slightly negative impact on Tourism Development in Vietnam. It is noteworthy that the Vietnamese Government share a budget from Foreign Direct Investment on Tourism Development - a lack of priority economic area from Foreign Direct Investment.

foreign direct investment tourism development autoregressive distributed lag model

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