The role of environmental practices and innovation in total factor productivity convergence -Evidence from small-and medium-sized manufacturing enterprises in Vietnam

Thanh Tam Nguyen-Huu (), Khac Minh Nguyen and Quoc Tran-Nam
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Thanh Tam Nguyen-Huu: Métis Lab EM Normandie - EM Normandie - École de Management de Normandie = EM Normandie Business School

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Abstract: This research investigates the nexus between environmental compliance, innovation, and Total Factor Productivity convergence. We use two measures of environmental practices: the firm environmental standard certification and environmental treatment. As for innovation, it has three increasing-levels: no innovation, product or process innovation, and both types of innovation. Using a sample of Vietnamese small-and medium-sized manufacturing enterprises from 2007 to 2015, the environmental practices are not correlated with total factor productivity. By contrast, there is a strong correlation between innovation and environmental treatment. Factors contributing to the firm productivity growth rate, and consequently the speed of convergence, are innovation, firm size, and legal form.

Keywords: Innovation TFP growth rate β-convergence Environmental practices; Innovation; TFP growth rate; β-convergence; Environmental practices (search for similar items in EconPapers)
Date: 2022-06-28
New Economics Papers: this item is included in nep-cse, nep-eff, nep-ent, nep-env, nep-sbm and nep-sea
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Published in Revue d'économie politique, 2022, Vol. 132 (3), pp.453-489. ⟨10.3917/redp.323.0453⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04248191

DOI: 10.3917/redp.323.0453

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