IMPACT OF SOCIAL CONNECTEDNESS ON FOREIGN INVESTMENT CAPITAL: EVIDENCE FROM ASIAN COUNTRIES INVESTING IN VIETNAM

Nguyen Ngoc Hoan , Nguyen Thu Ha, Nguyen Phuong Hiep

doi:10.59266/houjs.2024.449

Authors

Nguyen Ngoc Hoan , Nguyen Thu Ha, Nguyen Phuong Hiep

DOI:

https://doi.org/10.59266/houjs.2024.449

Keywords:

Foreign direct investment (FDI), Social network, Facebook social network, Social connectedness index (SCI)

Abstract

This study examines the correlation between foreign direct investment (FDI) inflows from Asian countries into Vietnam from 2010 to 2022 and social networks, as indicated by Facebook friend relationships (Social Connectivity Index, or SCI). The empirical results demonstrate that social connections significantly impact FDI inflows, suggesting that these linkages are crucial for reducing information friction and attracting foreign capital to Vietnam. These findings remain robust across various model specifications, including year-fixed effects and other known FDI determinants.

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