A provincial analysis of formal economic institutions and private investment in Vietnam

Unlocking the Secrets: Private Investments and the Remarkable Evolution of Vietnam's Economy

“…Recurrent expenditure has a positive impact on economic growth by improving the investment environment and reducing time and costs for private investment procedures, which has an immediate effect in the short term [Dang et al, 2020]. Infrastructure investment has a positive short-term and long-term impact on economic growth, indicating that infrastructure projects have an immediate effect on the economy, stimulating economic components, especially private sector activity even in economically disadvantaged regions [Luat, Trung, 2019]. Additionally, in the short term, an increase in the labor force may create pressure on the economy, but in the long term, it becomes an important input for businesses to select high-skilled labor at a low cost [Canh, Phong, 2018;Luat, Trung, 2019;Tung, 2019;Dang et al, 2020;Anh et al, 2021;.…”

“…Numerous studies have demonstrated that the labor force, human capital, and private sector credit are not only inputs to the economy but also crucial inputs to private investment activities. Regions with favorable input conditions are attractive to private investors because businesses can reduce production costs and generate new products that effectively meet local demands, thus easily creating spillover effects in other areas within the region [Ade, 2016;Omojolaibi et al, 2016;Nwakoby, Alajekwu, 2016;Luat, Trung, 2019;Popoola et al, 2022;. Description of variables employed in the model is presented in Table 1.…”