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Examining FDI Spillover Effects on Productivity Growth: Firm-Level Evidence from Vietnam

VPhuong V. Nguyen, Khoa T. Tran, Nga Thuy Thanh Le and Hoa Doan Xuan Trieu ()
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VPhuong V. Nguyen, Khoa T. Tran, Nga Thuy Thanh Le and Hoa Doan Xuan Trieu: International University-Vietnam National University Ho Chi Minh City, Vietnam

Journal of Economic Development, 2020, vol. 45, issue 1, 97-121

Abstract: 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

Keywords: Total Factor Productivity; Horizontal Spillovers; Technology Gap; Vertical Spillovers (search for similar items in EconPapers)
JEL-codes: F21 F23 (search for similar items in EconPapers)
Date: 2020
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Handle: RePEc:jed:journl:v:45:y:2020:i:1:p:97-121