SOCIO-ECONOMIC FACTORS INFLUENCE ON FOREIGN DIRECT INVESTMENT (FDI): A COMPARATIVE STUDY OF INDIA AND VIETNAM

Abstract

Foreign capital plays an aiding role in the economic development of a nation.  Foreign direct investment (FDI) is viewed as a driving factor for economic growth. This paper investigates the role of socio-economic factors in India and Vietnam, and explains the influx of Foreign Direct Investment (FDI).  In this analysis uses data from cross section time series for 15 socio-economic factors and the study period is from 1997 to 2018.  Our empirical results are that the relationship of importance between variables and FDI flows in.  In the last few years, because of data limitations, the literature review had concentrated on total FDI inflows in Asian countries. Unemployment and inflation have had a significant positive effect on both India and Vietnam's FDI inflows.