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North Versus South: The Effects Of Foreign Direct Investment And Historical Legacies On Poverty Reduction In Post-Đổi Mới Vietnam, Scott R. Sanders Aug 2014

North Versus South: The Effects Of Foreign Direct Investment And Historical Legacies On Poverty Reduction In Post-Đổi Mới Vietnam, Scott R. Sanders

Faculty Publications

This research examines the factors that account for variance in provincial poverty reduction rates between 2002 and 2008 in Vietnam. In particular, this paper uses spatial regression modeling to show that foreign direct investment (FDI) and the capitalist legacies of southern Vietnam significantly affected provincial poverty reduction during this time period. These findings suggest that although Vietnam as a whole has benefited from post-Đổi Mới economic reform and FDI, the historical capitalist legacies of the former Republic of Vietnam played a strong role in aiding provinces in the south in attracting FDI and subsequently reducing provincial poverty.