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Title: The sub-national institution in an emerging country and the location choice of high technology investment: evidence from Vietnam

Authors: Phan Thi Thuy Hang; Nguyen Thi Tuong Anh; Phung Duy Quang

Addresses: Faculty of Economics and Urbanism, Hanoi Metropolitan University, Vietnam ' Faculty of International Economics, Foreign Trade University, Vietnam ' Faculty of Basic Sciences, Foreign Trade University, Vietnam

Abstract: After choosing the country to penetrate, foreign investors will decide the location for the operation. The decisions not only have to accommodate the institutional conditions that vary between home countries and host countries but also within the chosen host country. Based on theories of location choice, we analysed the impact of the determinants on the location choice of the high technology investors that used the institutional variables and traditional factors at the provincial level in Vietnam. The research used the methodology of spatial regression panel data and agglomeration effect in 63 provinces in Vietnam from 2007 to 2020. The results show that the institutional variables have a significant meaning on high-tech foreign direct investment (FDI), and the traditional factors affect the location choice of the investors.

Keywords: high-technology FDI; sub-national institution; location choice; Vietnam.

DOI: 10.1504/IJEBR.2024.136167

International Journal of Economics and Business Research, 2024 Vol.27 No.1, pp.151 - 174

Received: 22 Jul 2023
Accepted: 23 Sep 2023
Published online: 19 Jan 2024 *