When Does Compact Urban Development Attract High-Quality Foreign Direct Investment? A Configurational Analysis of Compact-Oriented Cities
Authors: Dr. Do Phu Hai
DOI: 10.87349/ahuri/181041
Page No: 142-172
Abstract
This study investigates whether and under what conditions policy-driven compact urban development enhances a city’s capacity to attract high-quality foreign direct investment (FDI). Moving beyond correlational accounts of density and investment, the paper conceptualizes compactness as a strategic urban policy intervention whose effects materialize through specific configurational pathways. Using Qualitative Comparative Analysis (QCA) across 25 compactoriented cities in Vietnam and comparator regions, the study identifies multiple sufficient combinations linking compactness with human capital, agglomeration economies, accessibility, governance quality, land-market pressures, and environmental performance. The findings demonstrate that compactness alone is neither universally sufficient nor irrelevant; its effectiveness depends on conjunctural alignment with complementary structural and institutional conditions. By revealing asymmetric and equifinal causal patterns, the research advances urban–FDI theory and offers policy-relevant insights for cities seeking to leverage compact development to attract knowledge-intensive, value-adding, and sustainable investment.
