LBPG5018 Research Methodology Assignment Sample
The Vietnam government implemented the “doi moi” policy in the year of 1986 and also enforced the “foreign direct investment law” in the year of 1987. After implementing this law, the economic growth in this country has increased significantly. For this reason, “foreign direct investment” plays an essential role in this country’s economic growth. Nevertheless, major remarkable programmes strongly influence the global economic perspectives in the “China-US trade war” and the outbreak of covid 19 (Lee et al. 2021). The development of the “foreign direct investment” is flawed in this country that has remained stable compared to the other country. Based on the “World Bank” report, Vietnam is the most developed country in terms of FDI in Asia.
The research will aim to understand “the inward Foreign Direct Investment and Trade Openness in Vietnam”.
The research objectives will be –
- “To understand the relationship between foreign direct investment and trade openness.”
- “To analyse the importance of foreign direct investment in Vietnam.”
- To evaluate the role of inward foreign direct investment and trade openness influencing economy of Vietnam.”
The “foreign direct investment” has several benefits by which they can hold the best position within Asia. Based on research, FDI helps develop the country’s economy and helps create a positive business environment for several organisations, foreign and local investors and stimulates the local economy and communities. Based on a study, the researchers reported that FDI encourages an easy way for international trade (Su et al. 2019). Vietnam has its own tariff, which helps the trading opportunities easier than the other countries. Because of trade openness, the Covid 19 outbreak does not significantly impact the country’s economic structure.
The FDI helps boost the economic structure that reduces the percentage of unemployment in this country. The foreigners quickly invest their capital in introducing the new organisations and provide better opportunities for the young generation (Arvin et al., 2021). On the other hand, the foreign investors have a chance of the tax incentives that are very beneficial for operating their b business functions outside of their home country. Improving human resources has a significant advantage because of trade openness and FDI. Similarly, the knowledge and skill also motivate business owners to provide proper training to inform the advanced technological usage in this particular organisation to enhance productivity.
The FDI also helps the organisations transform their resources and exchange advanced technologies, knowledge, and skill with other countries (Pradhan et al. 2019). Conversely, “foreign direct investment” helps to reduce the differences between costs and revenues. Vietnam has some opportunities to reduce the manufacturing cost that increase the profit margin. Conversely, “foreign direct investment” provides advanced equipment and facilities to the foreign investors that help to increase the percentage of workforce and productivity in a particular organisation.
Similarly, FDI in Vietnam encourages the country’s payroll and motivates to attract more talents not to switch their occupation to another country (Rathnayaka Mudiyanselage et al. 2021). The advantages of FDI help to increase the occupation wages that promote the country’s economic development. Large organisations have higher salary packages than other countries, which leads to an increment in the payroll.
In this theory the economist stated that the macroeconomic perspective helps to understand on how to spend money and how it impacts on employment, output and inflammation. This theory was introduced by the British economist John Maynard Keynes in 1930s. This theory was introduced to discuss about the economic depression in the Great Britain. Keynesian economics is focused on the “demand-side” theory to address the change within the economic domain in short term basis (World Economic Forum, 2022).
Figure 1: Keynesian economics theory
(Source: World Economic Forum, 2022)
As opined by Rathnayaka Mudiyanselage et al. (2021), “Trade openness and inward foreign direct investment in Vietnam” help this country grow the job opportunities and also helps to reduce the percentage of poverty and under nutrition. Trade gives options to exposure in the new market to reduce poverty and increase wages that have significant advantages in this geography to shape the competitive advantages to sustain in the international market (Khan, and Ozturk, 2020).
The country is more developed in the aspect of “foreign direct investment” in the present times. For this reason, it is possible because of harness the openness in the economy in the international investment, trade based on people’s needs. This is an emerging country, and the total population is almost 10 million people, which helps increase the GDP rate.
The “global value chains” (GVCs) are offered to this country to improve their economics by engaging with the world economic segment. Similarly, more foreigners are involved in developing the country’s economic development, close to at least 45% compared to the international trade system (Borda Reyes et al. 2019). The changes help intensify market competition in the world market to increase competitiveness because of trade openness.
On the other hand, the competitive schedule gives many benefits to investment, trade system and movement of citizens. On the contrary, “Inward foreign direct investment” is the crucial perspective for increasing Vietnam’s competitiveness in the economy and increasing the trade success among several organisations based on the world economy to the integration of the GVCs (Pradhan et al. 2019).
Similarly, the competitiveness in this economy helps to determine how openness converts to opportunities for all citizens. Conversely, based on research, regulations and policies positively impact the business environment (Kong et al. 2021). This country has “good governance” like effective public investment, proper decision-making process and opportunity on the property and effective business contracts within the organisation. The “inward foreign direct investment and trade openness” helps this country to hold the best position within Asia.
A research approach is a procedure and plan structured with several steps of the wider research assumptions to address the detailed procedure of data analysis, collection and data interpretation. Therefore based on the research approach, the research design is structured (Rehman, and Ding, 2020). This research will follow a deductive approach that focuses on structuring a hypothesis based on the ground theory, and after that, this helps to frame the appropriate research strategy to analyse the proposed hypothesis.
The deductive approach defines the reasoning that is framed from particular to the general. The research factors are associated with the specific theory that is true for some cases. The deductive design helps to test the association with various circumstances. Deductive approach is helped to explain the hypothesis and its nature that is derived from theory and its propositions. In this research inductive approach is excluded because the research will apply the particular factors that will be reflected in the general population. The deductive research approach helps the researcher to study the various factors in Vietnam.
Research design plays an essential role in helping the researcher to understand how to collect data for this research. In this research, an explanatory research design will be selected because it helps to explore to understand the research factors based on available data. This research design helps the researcher to analyse the research topic based on the specific phenomenon to predict the future (Abdulsalam et al. 2021). Explanatory research is helped to explain the “cause and effect” approach that helps to invest trends and patterns based on the research data.
Explanatory research helps the researcher to understand research patterns to structure patterns to guide future research. Explanatory research is an approach that is structured to investigate several phenomena that are not analysed before in a detailed way. The primary intention helps to provide detailed information about how to interpret the research data from getting limited data. Other research designs are excluded because these research designs do not test hypotheses based on research data and this research design is not clearly mentioned the research problem properly.
The research will follow secondary qualitative data because secondary data helps to collect a wide range of data from several populations. On the other hand, the secondary qualitative methods help to explain the research problem in a structured way by using an in-depth description. Similarly, the research will follow thematic analysis because the research data will be analysed properly based on relevant themes after addressing the research objectives.
The primary data collection method is excluded because in economics the interview method will be difficult to collect a wide range of data (Mohajan, 2018). The statistical data analysis is excluded because this method is appropriate for a quantitative study. In this research work, the research will follow exclusion and inclusion criteria.
Within inclusion criteria, the researcher will consider those papers that will publish from 2018 to 2022 and publish in only the English language. The keywords are “foreign direct invest”, “inward”, “trade openness”, and “economics in Vietnam”. The researcher will select 15 papers after using keywords and excluded other papers like those papers published before 2018, and other language papers.
This research will be helpful to understand the relationship between FDI and trade openness in Vietnam. The research will help to develop economic stimulation. FDI helps to stimulate Vietnam’s economic improvement t and also helps to create a more positive environment for the organisations, and investors and motivate the local economy and community people (Pandey, and Pandey, 2021). On the other hand, this country will help to promote the international trade and the foreign can easily invest in the business.
The country structures their own tariffs that help to make trading purposes. Conversely, reducing the percentage of unemployment boosted Vietnam’s economy. FDI makes new job opportunities for potential investors to establish new organisations in another country. This opportunity leads to an increase in the percentage of income opportunities and also the power of purchasing which leads to achieving the target economic objectives.
This study has a major limitation that is the research will not use primary data because of time limitations and budget constraints. For this reason, the existing data tend to be difficult to extract appropriate information based on research requirements. Alternatively, the existing data will be not appropriate for another population. On the other hand, the proposed research will also face various challenges like missing essential data like cohort numbers, participants issues and others (Newman, and Gough, 2020).
Because of missing data, the researcher sometimes will not represent the data in the entire population. Sometimes appreciate secondary data will not be easily accessed on the online platform which is the major disadvantage of not using primary data. This proposed research will not use quantitative data and the statistical data is not possible to represent the percentage values and association of dependent and independent values.
The researcher will follow proper ethical considerations to gather authentic and relevant data for this secondary qualitative research work. The researcher will search journals, articles and newspapers that will be documented in a locked file by using a single user password. The researcher will acknowledge this properly in the research paper.
Conversely, the data will be deleted after completing the research work and the data will not be shared for personal purposes (Cr, 2020). Applying secondary data this will helps the researcher to gather authentic and relevant information. The “units of measurement” will not same for all researchers and the research concept will not same as other existing research work. The researcher will not copy any words from other papers.
“Foreign direct investment” helps to reduce the percentage of unemployment rate in Vietnam and also it helps to foreigners to invest directly which influences the country’s economy. In this research, the researcher will follow a secondary qualitative method by which the researcher will discuss the research objectives in a detailed way. On the other hand, teh researcher will detail discuss the collected data by making various relevant themes based on research objectives.
Alternatively, the researcher also reviews various literature that helps to understand the research topic in a structured way. The researcher also will follow a proper ethical consideration by which the researcher will acknowledge another researcher to use their information. The researcher also gives assurance that the researcher will not copy any words from other existing literature.
Figure 1: Gantt chart
(Source: Created by author)
Abdulsalam, A., Xu, H., Ameer, W., Abdo, A.B. and Xia, J., 2021. Exploration of the impact of China’s outward foreign direct investment (FDI) on economic growth in Asia and North Africa along the belt and road (B&R) initiative. Sustainability, 13(4), p.1623.
Arvin, M.B., Pradhan, R.P. and Nair, M., 2021. Uncovering interlinks among ICT connectivity and penetration, trade openness, foreign direct investment, and economic growth: The case of the G-20 countries. Telematics and Informatics, 60, p.101567.
Borda Reyes, A., Newbury, W., Carneiro, J. and Cordova, C., 2019. Using Latin America as a research laboratory: The moderating effect of trade openness on the relationship between inward and outward FDI. Multinational Business Review, 27(2), pp.122-140.
Cr, K., 2020. Research methodology methods and techniques.
Khan, M.A. and Ozturk, I., 2020. Examining foreign direct investment and environmental pollution linkage in Asia. Environmental Science and Pollution Research, 27(7), pp.7244-7255.
Kong, Q., Peng, D., Ni, Y., Jiang, X. and Wang, Z., 2021. Trade openness and economic growth quality of China: Empirical analysis using ARDL model. Finance Research Letters, 38, p.101488.
Lee, J.Y., Hsiao, Y.C., Bui, N. and Nguyen, T.T., 2021. Inward Foreign Direct Investment and Trade Openness in Vietnam: A Nonlinear Autoregressive Distributed Lag Approach. Economies, 9(3), p.120.
Mahajan, H.K., 2018. Qualitative research methodology in social sciences and related subjects. Journal of Economic Development, Environment and People, 7(1), pp.23-48.
Newman, M. and Gough, D., 2020. Systematic reviews in educational research: Methodology, perspectives and application. Systematic reviews in educational research, pp.3-22.
Pandey, P. and Pandey, M.M., 2021. Research methodology tools and techniques. Bridge Center.
Pradhan, R.P., Arvin, M.B. and Hall, J.H., 2019. The nexus between economic growth, stock market depth, trade openness, and foreign direct investment: the case of ASEAN countries. The Singapore Economic Review, 64(03), pp.461-493.
Rathnayaka Mudiyanselage, M.M., Epuran, G. and Tescașiu, B., 2021. Causal links between trade openness and foreign direct investment in Romania. Journal of Risk and Financial Management, 14(3), p.90.
Rehman, F.U. and Ding, Y., 2020. The nexus between outward foreign direct investment and export sophistication: new evidence from China. Applied Economics Letters, 27(5), pp.357-365.
Su, D.T., Nguyen, P.C. and Christophe, S., 2019. Impact of foreign direct investment, trade openness and economic institutions on growth in emerging countries: The case of Vietnam. Journal of international studies, 12(3).
World Economic Forum. 2022. Does Keynes’s theory still hold up?. [online] Available at: <https://www.weforum.org/agenda/2016/02/does-keynes-s-theory-still-hold-up/> [Accessed 21 April 2022].
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