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This study aims to evaluate the impact of foreign direct investment (FDI) on Vietnamese provinces' economic growth using spatial econometric models together with the data collected from statistical departures during the year 2010-2020.The result shows that FDI has a positive impact with the economic growth of provinces.However, modeling the spillover effects of FDI from one province to another is relatively challenging due to the complexity of quantifying variables and the inability to fully describe the transmission channels based on the unique characteristics of data from each province.For example, when an FDI enterprise decides to invest in a province, they not only utilize labor within that province but also draw upon labor from other provinces.Therefore, the negative indirect spillover effect of the model also partially explains the input (specifically labor) migration from provinces without FDI investment to those with FDI investment in Viet Nam.The study also finds that other factors, such as public investment, private investment and provincial competitiveness play important roles in promoting economic growth.The article discusses the policy implications of these finding for FDI attraction and allocation strategies in Vietnam.However, the limitations of the paper are recognized, particularly in modeling the complex spillover channels through which FDI affect growth across provinces.The study contributed to the literature by providing new evidence on the spatial dimensions of FDI and economic growth in a developing context.
Bich et al. (Sun,) studied this question.