How Does the Competitiveness Index Promote Foreign Direct Investment at the Provincial Level in Vietnam? An Integrated Grey Delphi–DEA Model Approach
Foreign direct investment (FDI) is an important factor in building a strong economy for a country, particularly in developing and emerging markets. Both domestic enterprises and policy makers have been motivated to attract FDI for the benefits of FDI, such as technological transfers, spillover benef...
| Main Authors: | , , , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2023-03-01
|
| Series: | Mathematics |
| Subjects: | |
| Online Access: | https://www.mdpi.com/2227-7390/11/6/1500 |
| _version_ | 1797610320127066112 |
|---|---|
| author | Phi-Hung Nguyen Thi-Ly Nguyen Hong-Quan Le Thuy-Quynh Pham Hoang-Anh Nguyen Chi-Vinh Pham |
| author_facet | Phi-Hung Nguyen Thi-Ly Nguyen Hong-Quan Le Thuy-Quynh Pham Hoang-Anh Nguyen Chi-Vinh Pham |
| author_sort | Phi-Hung Nguyen |
| collection | DOAJ |
| description | Foreign direct investment (FDI) is an important factor in building a strong economy for a country, particularly in developing and emerging markets. Both domestic enterprises and policy makers have been motivated to attract FDI for the benefits of FDI, such as technological transfers, spillover benefits, and rising competition. There is a need for a functional model to assess how the competitive index affects FDI attractiveness. Therefore, in this study, the authors use an integrated model of Grey Delphi, the Data Envelopment Analysis Super Slack-Based Measure Model (DEA–Super SBM), and the Malmquist Model (DEA–Malmquist) to evaluate the FDI attractiveness of Vietnamese provinces from 2017 to 2021. Firstly, ten critical dimensions of the provincial competitive index (PCI) affecting the number of FDI by cases and amount of FDI capital were validated via the Grey Delphi method. Secondly, the Super-SBM model is applied to assess the FDI efficiency of 63 provinces in Vietnam from 2017 to 2021. Then, the DEA–Malmquist model is employed to analyze the total change in the productivity of 63 provinces’ FDI performance in Vietnam. The findings of this study revealed that the efficiency of FDI in Vietnam’s provinces is relatively low, and there is a significant variation in the attractiveness of FDI among the provinces. This study can provide valuable insights for policy makers and other stakeholders in developing effective strategies to attract FDI and foster economic development. |
| first_indexed | 2024-03-11T06:13:47Z |
| format | Article |
| id | doaj.art-db5f1deedbdf4d95a9edf23e71a6fb64 |
| institution | Directory Open Access Journal |
| issn | 2227-7390 |
| language | English |
| last_indexed | 2024-03-11T06:13:47Z |
| publishDate | 2023-03-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Mathematics |
| spelling | doaj.art-db5f1deedbdf4d95a9edf23e71a6fb642023-11-17T12:29:30ZengMDPI AGMathematics2227-73902023-03-01116150010.3390/math11061500How Does the Competitiveness Index Promote Foreign Direct Investment at the Provincial Level in Vietnam? An Integrated Grey Delphi–DEA Model ApproachPhi-Hung Nguyen0Thi-Ly Nguyen1Hong-Quan Le2Thuy-Quynh Pham3Hoang-Anh Nguyen4Chi-Vinh Pham5Research Center of Applied Sciences, Faculty of Business, FPT University, Hanoi 100000, VietnamFaculty of Management, Hanoi School of Business and Management, Hanoi 100000, VietnamResearch Center of Applied Sciences, Faculty of Business, FPT University, Hanoi 100000, VietnamResearch Center of Applied Sciences, Faculty of Business, FPT University, Hanoi 100000, VietnamResearch Center of Applied Sciences, Faculty of Business, FPT University, Hanoi 100000, VietnamResearch Center of Applied Sciences, Faculty of Business, FPT University, Hanoi 100000, VietnamForeign direct investment (FDI) is an important factor in building a strong economy for a country, particularly in developing and emerging markets. Both domestic enterprises and policy makers have been motivated to attract FDI for the benefits of FDI, such as technological transfers, spillover benefits, and rising competition. There is a need for a functional model to assess how the competitive index affects FDI attractiveness. Therefore, in this study, the authors use an integrated model of Grey Delphi, the Data Envelopment Analysis Super Slack-Based Measure Model (DEA–Super SBM), and the Malmquist Model (DEA–Malmquist) to evaluate the FDI attractiveness of Vietnamese provinces from 2017 to 2021. Firstly, ten critical dimensions of the provincial competitive index (PCI) affecting the number of FDI by cases and amount of FDI capital were validated via the Grey Delphi method. Secondly, the Super-SBM model is applied to assess the FDI efficiency of 63 provinces in Vietnam from 2017 to 2021. Then, the DEA–Malmquist model is employed to analyze the total change in the productivity of 63 provinces’ FDI performance in Vietnam. The findings of this study revealed that the efficiency of FDI in Vietnam’s provinces is relatively low, and there is a significant variation in the attractiveness of FDI among the provinces. This study can provide valuable insights for policy makers and other stakeholders in developing effective strategies to attract FDI and foster economic development.https://www.mdpi.com/2227-7390/11/6/1500efficiencyinefficiencyforeign direct investmentgrey DelphiData Envelopment AnalysisMalmquist |
| spellingShingle | Phi-Hung Nguyen Thi-Ly Nguyen Hong-Quan Le Thuy-Quynh Pham Hoang-Anh Nguyen Chi-Vinh Pham How Does the Competitiveness Index Promote Foreign Direct Investment at the Provincial Level in Vietnam? An Integrated Grey Delphi–DEA Model Approach Mathematics efficiency inefficiency foreign direct investment grey Delphi Data Envelopment Analysis Malmquist |
| title | How Does the Competitiveness Index Promote Foreign Direct Investment at the Provincial Level in Vietnam? An Integrated Grey Delphi–DEA Model Approach |
| title_full | How Does the Competitiveness Index Promote Foreign Direct Investment at the Provincial Level in Vietnam? An Integrated Grey Delphi–DEA Model Approach |
| title_fullStr | How Does the Competitiveness Index Promote Foreign Direct Investment at the Provincial Level in Vietnam? An Integrated Grey Delphi–DEA Model Approach |
| title_full_unstemmed | How Does the Competitiveness Index Promote Foreign Direct Investment at the Provincial Level in Vietnam? An Integrated Grey Delphi–DEA Model Approach |
| title_short | How Does the Competitiveness Index Promote Foreign Direct Investment at the Provincial Level in Vietnam? An Integrated Grey Delphi–DEA Model Approach |
| title_sort | how does the competitiveness index promote foreign direct investment at the provincial level in vietnam an integrated grey delphi dea model approach |
| topic | efficiency inefficiency foreign direct investment grey Delphi Data Envelopment Analysis Malmquist |
| url | https://www.mdpi.com/2227-7390/11/6/1500 |
| work_keys_str_mv | AT phihungnguyen howdoesthecompetitivenessindexpromoteforeigndirectinvestmentattheprovinciallevelinvietnamanintegratedgreydelphideamodelapproach AT thilynguyen howdoesthecompetitivenessindexpromoteforeigndirectinvestmentattheprovinciallevelinvietnamanintegratedgreydelphideamodelapproach AT hongquanle howdoesthecompetitivenessindexpromoteforeigndirectinvestmentattheprovinciallevelinvietnamanintegratedgreydelphideamodelapproach AT thuyquynhpham howdoesthecompetitivenessindexpromoteforeigndirectinvestmentattheprovinciallevelinvietnamanintegratedgreydelphideamodelapproach AT hoanganhnguyen howdoesthecompetitivenessindexpromoteforeigndirectinvestmentattheprovinciallevelinvietnamanintegratedgreydelphideamodelapproach AT chivinhpham howdoesthecompetitivenessindexpromoteforeigndirectinvestmentattheprovinciallevelinvietnamanintegratedgreydelphideamodelapproach |