Affecting of Provincial Institutions on Investment Capital in Mekong Delta in Vietnam

Abstract:

The institutions play a major role to create economic activities changes, to create a favorable environment in investment, to attract capital flows for investing economy development in the time of economic recovery. This research foccus on the effects of provincial institutions through PAPI and PCI on attracting investment capital of enterprises in the Mekong Delta. The data is collected from reports of the GSO and the VCCI of Vietnam from 2016 to 2021. The results of the feasible generalized least squares (FGLS) regression concluded that PAPI and gross regional domestic product (GRDP) have positive impacts on investment capital; while PCI has the opposite impact. Investment of public capital and labor supply have no effect on investment capital.