Impacts of Investment, Labour, and Infrastructure on Economic Growth in the Southern Key Economic Region

Abstract

The study investigates the impacts of various macroeconomic factors such as investment, labour, and infrastructure on the GDP of 8 provinces in the Southern Key Economic Region Viet Nam, from 2005 to 2021. OLS, FEM, REM, and GLS all show that state capital and private capital have a pretty positive impact on GDP, while FDI affects GDP insignificantly. This evidence is related to the ability of each region to absorb and diffuse technology and management experience from FDI. Labour has an almost insignificant impact on GDP. Variables representing infrastructure, such as information technology, do not impact economic growth, while transportation, including the volume of road and waterway freight transport, significantly impacts GDP.