Impact of Economic Freedom and Corruption Perceptions Index on Foreign Direct Investment in Vietnam

Abstract

Foreign direct investment is an important source of investment capital that is indispensable to contribute to each country's total investment capital. FDI attraction has always been of special interest to governments in both developed and developing countries. The empirical method was employed on a secondary time series data set during the period 1999-2018 to determine the impact of economic freedom index and corruption perceptions index on foreign direct investment in Vietnam by using the linear approach. The empirical results show that the relationship between corruption perceptions index and foreign direct investment is a positive sign at a 1% significant level. The effect of economic freedom index on foreign direct investment has a positive effect at a 5% significant level.