Determinants of capital flows to emerging economies - Evidence from Vietnam

Abstract

This paper examines the determinants of capital flows to emerging economies. We analyze the determinants of foreign direct investment (FDI) flows into Vietnam as a unique case. The paper contributes to the current literature in the sense that we focus on the characteristics of the source countries and bilateral relationship between the source and destination countries. Employing different econometric techniques, our results confirm the push factor determinants of FDI. Further, the paper highlights the importance of bilateral relationship between the source and the destination countries in attracting FDI