The impact of digitalization and foreign direct investment on income inequality: Implications for human resource quality in the digital age

International Journal of Research Studies in Education
Special Luminary Issue
2025
Volume 14 Issue 2

Available Online:  20 February 2025

Author/s:

Do, Linh
National Economics University, Vietnam (dophuonglinh3204vn@gmail.com)

Tran, Hien*
National Economics University, Vietnam (tranvy.stuydy@gmail.com)

Ninh, Lam
National Economics University, Vietnam (ninhnguyentruclam24@gmail.com)

Vo, Chau
National Economics University, Vietnam (vmchau136@gmail.com)

Nguyen, The
National Economics University, Vietnam (thenm@neu.edu.vn)

Hoang, Huong
National Economics University, Vietnam (huonghlnhtc@neu.edu.vn)

Abstract:

This paper examines the impact of digitalization and foreign direct investment (FDI) on income inequality in Vietnam with data collected from 46 provinces over the 2018-2022 period. Employing the OLS, FEM, REM, and GLS methods, the results show that while digitalization, FDI, and trade openness help to reduce income inequality, human capital could widen this gap across provinces. Based on the findings and analysis, recommendations are proposed to improve Vietnam’s human capital quality in the digital age.

Keywords: digitalization, foreign direct investment, human capital, income inequality

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DOI: https://doi.org/10.5861/ijrse.2025.25809

Cite this article:
Do, L., Tran, H., Ninh, L., Vo, C., Nguyen, T., & Hoang, H. (2025). The impact of digitalization and foreign direct investment on income inequality: Implications for human resource quality in the digital age. International Journal of Research Studies in Education, 14(2), 81-90. https://doi.org/10.5861/ijrse.2025.25809

* Corresponding Author