FOREIGN DIRECT INVESTMENT, RENEWABLE ENERGY AND SOCIAL WELFARE IN VIETNAM

Abstract

This study aims to investigate the relationship between foreign direct investment, renewable energy, and social welfare in Vietnam from 1991 to 2021. Using the Autoregressive Distributed Lag model, the study evaluates the short-term and long-term impacts among the variables. The results indicate that renewable energy has a negative impact both in the short term and long term. Foreign direct investment does not have a statistically significant effect on social welfare in the short term but shows a negative impact in the long term. These findings suggest important policy directions, such as improving mechanisms to support renewable energy development and enhancing the quality of foreign direct investment flows to ensure the enhancement of social welfare toward sustainable development in Vietnam.