Institutional Environment and Foreign Direct Investment: Evidence from Provinces in Mekong Delta

Abstract

This study was conducted to examine the influence of institutional environment factors on foreign direct investment (FDI) in the Mekong Delta provinces. By using estimation methods of fixed effect model (FEM) and random effect model (REM), and Hausman test, FEM is considered as the most suitable method for discussion and policy recommendations. The results show that the constitutive factors of the institutional environment affect the ability to attract FDI in the Mekong Delta provinces. Based on the research results, policy implications related to the institutional environment have also been proposed to promote the attraction of FDI in the Mekong Delta provinces in the future.