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Global financial crisis and firm activities in global value chain: case of Vietnamese firms

Shandre Mugan Thangavelu () and Anbumozhi Venkatachalam
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Shandre Mugan Thangavelu: Sunway University
Anbumozhi Venkatachalam: ERIA

Journal of Social and Economic Development, 2021, vol. 23, issue 3, No 5, 505-520

Abstract: Abstract This paper studies effects of economic shocks on the productive performance of manufacturing firms at Vietnam using the firm level data from 2004–2008. The paper also examines the effects of economic shocks on the productive performance of firms in terms of access to linkages, spillovers, and ownership structures in terms of foreign and domestic firms. The economic shocks such as global financial crisis tend to have greater impact on domestic firms and SOEs. The findings suggest that the local private enterprises did not receive positive foreign horizontal and backward spillovers from the MNEs. The results also indicate that trade policies (effective rate of protection) that protect domestic firms tend to have a negative impact on their productive performance of firms during economic crisis.

Date: 2021
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DOI: 10.1007/s40847-020-00135-9

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Journal of Social and Economic Development is currently edited by M.G. Chandrakanth, D. Rajasekhar, Anand Inbanathan and S. Madheswaran

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