Impact of Public, Private, and Foreign Direct Investments on Provincial Economic Growth: Evidence From a Transition Country

This study investigates the effects of public, private, and foreign direct investment (FDI) on provincial economic growth in transitional economies, using panel data from 63 Vietnamese provinces over the period 2010-2022, comprising 819 yearly observations. The findings indicate that public investment and FDI positively influence economic growth, while private investment shows no statistically significant impact. These results highlight the importance of prioritizing infrastructure development through public investment to enhance regional connectivity and reduce disparities. Addressing structural barriers that hinder private investment, such as inconsistent legal frameworks and restricted credit access, requires policy reforms to enhance its effectiveness. The positive role of FDI underscores the need for a stable investment environment to facilitate technology transfer, innovation, and capacity building. These insights provide valuable guidance for optimizing investment strategies in transitional economies.