EXAMINING FDI SPILLOVER EFFECTS ON PRODUCTIVITY GROWTH: FIRM-LEVEL EVIDENCE FROM VIETNAM

The relationship between foreign direct investment (FDI) and firm productivity still greatly concerns many researchers. Even though this topic has provided rich insight into the impacts of FDI spillovers, limited empirical research has been conducted to figure out the heterogeneous impact of such sp...

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Bibliographic Details
Published in:Journal of economic development 2020, 45(1), , pp.97-121
Main Authors: Nguyen, Phuong V, Tran, Khoa T, Le, Nga Thuy Thanh, Trieu, Hoa Doan Xuan
Format: Article
Language:English
Subjects:
Competition
Economic growth
Economic reform
Foreign investment
Manufacturing
Multinational corporations
Productivity
Researchers
Studies
Tax cuts
경제학
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Summary:The relationship between foreign direct investment (FDI) and firm productivity still greatly concerns many researchers. Even though this topic has provided rich insight into the impacts of FDI spillovers, limited empirical research has been conducted to figure out the heterogeneous impact of such spillovers in the case of Vietnam. In this study, which employs the generalized methods of moments to investigate a sample of 537,772 enterprises operating in Vietnam in the period from 2007 to 2015, we examine how spillovers occur and how they can affect domestic firms productivity. Intra-industrial and regional spillovers impact negatively on the productivity of domestic firms. Regarding intra-industrial spillovers, only backward ones positively affect local productivity.
ISSN:0254-8372
DOI:10.35866/caujed.2020.45.1.006