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Globalization and Performance of Small and Large Firm: Case of Vietnamese Firms

Shandre Mugan Thangavelu

Chapter 10 in Globalization and Performance of Small and Large Firms, pp X-1 - X-35 from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: This paper intends to study the productive performance of small (SMEs) versus Larger domestic and foreign firms. In particular, the paper also examines the determinants of productive performance of firms in terms of its linkages, spillovers, and ownership structures in form of foreign and public ownership. The findings suggest that there is no horizontal spillovers on the domestic firms from foreign activities in the Vietnamese manufacturing sector. However, we do observe positive backward linkages if we account the dynamic effects of the spillovers. We also observe state-owned enterprises play an important role in the backward spillover on the domestic economy. This directly relates to the role of SOEs in the development process of the Vietnamese economy.

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