The Impact of Recentralisation on FDI: Evidence from a Quasi-Natural Experiment

IF 2.2 3区经济学 Q2 ECONOMICS

Post-Communist Economies Pub Date : 2022-02-24 DOI:10.1080/14631377.2022.2029252

H. Luu, Minh Ngoc Nguyen, H. Nguyen

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引用次数: 1

Abstract

ABSTRACT Although decentralised governance has been one of the most salient political regimes worldwide over the past few decades, many countries have started to realise various shortcomings associated with their decentralisation process. As a consequence, a number of central governments have attempted to pursue recentralisation reforms in order to reclaim authority from the localities. This government reform can lead to significant changes in institutional arrangements, and subsequently, may influence various aspects of socio-economic activities. However, the real impact of recentralisation reform still remains ambiguous. In this paper, we examine how recentralisation may affect foreign direct investment (FDI) inflows. We exploit the pilot recentralisation reform that temporarily abolished the intermediate legislative branches in some provinces in Vietnam as a quasi-natural experiment. The result shows that recentralisation leads to a significant reduction in FDI inflows. Our results are robust to a number of sensitivity analyses and falsification tests. Overall, our findings contribute to the literature on the determinants of FDI and provide new evidence on the real effect of recentralisation reform.

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再集中化对FDI的影响——来自准自然实验的证据

摘要尽管在过去的几十年里，权力下放治理一直是世界上最突出的政治制度之一，但许多国家已经开始意识到其权力下放过程中存在的各种缺陷。因此，一些中央政府试图推行重新集中化改革，以从地方收回权力。这种政府改革可以导致体制安排的重大变化，随后可能影响社会经济活动的各个方面。然而，重新集中化改革的真正影响仍然模糊不清。在本文中，我们研究了再集中如何影响外国直接投资流入。我们将重新集中改革试点作为准自然实验，该试点暂时取消了越南一些省份的中级立法机构。结果表明，重新集中导致外国直接投资流入显著减少。我们的结果对许多敏感性分析和伪造测试都是稳健的。总的来说，我们的研究结果有助于研究外国直接投资的决定因素，并为重新集中化改革的实际效果提供了新的证据。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Post-Communist Economies ECONOMICS-

CiteScore

4.90

自引率

18.20%

发文量

期刊介绍： Post-Communist Economies publishes key research and policy articles in the analysis of post-communist economies. The basic transformation in the past two decades through stabilisation, liberalisation and privatisation has been completed in virtually all of the former communist countries, but despite the dramatic changes that have taken place, the post-communist economies still form a clearly identifiable group, distinguished by the impact of the years of communist rule. Post-communist economies still present distinctive problems that make them a particular focus of research.