THE CHALLENGES IN ORGANIC AGRICULTURAL PRODUCTS MARKET IN SOUTHEAST ASIA

Abstract

The linkages of foreign direct investment (FDI) to economic growth have been an issue of intense argument for a long time. Although this debate has provided rich insights into the relationship between FDI and growth in developing countries, there is very little empirical analysis of the issue in Vietnam compared to other developing countries, especially in applying a simultaneous equation model to test the relationship between FDI and economic growth. Such a model can provide greater power and insight than previous studies, which have used either single equation estimation techniques or qualitative methods. Our findings show that FDI and economic growth are important determinants of each other in Vietnam.