Impact of public investment on total factor productivity in Binhdinh province

Abstract

This article examines the impact of public investment on Total Factor Productivity - TFP of Binh Dinh province. The research uses a combination of many different methods such as descriptive statistics, comparison, synthesis and econometric models with estimation methods such as OLS, REM, FEM, 3SLS, ARDL with secondary data from annual statistical directory of Binh Dinh province, from the set of provincial competitiveness index - PCI and the information technology application readiness index in the period 2005-2021. The results show that public investment has an impact on improving the overall TFP of the economy and the private economic sector and this impact is maintained in the long term. In addition, we come to a finding that the province's digital transformation capacity has a positive impact on the province's long-term TFP.