Economic linkages, technology transfers, and firm heterogeneity: The case of manufacturing firms in the Southern Key Economic Zone of Vietnam

Chi-Hai Nguyen, Thanh Ngo, My-Duyen Pham, Anh-Tuan Nguyen and Ngoc-Chuong Huynh

MPRA Paper from University Library of Munich, Germany

Abstract: The current article examines the factors affecting economic linkages in the Southern Key Economic Zone of Vietnam, using a unique 5-year firm-level dataset with 5050 observations, using a unique 5-year firm-level dataset with 5050 observations, which is collected and merged from two data sources namely the Vietnam Technology and Competitiveness Survey and the Vietnam Annual Enterprise Survey in 2015-2019. Empirical results from estimating panel logit models based on different types of economic linkages such as (1) backward economic linkage with the domestic supplier, (2) backward economic linkage with a foreign supplier, (3) forward economic linkage with the domestic customer, and (4) forward economic linkage with a foreign customer reveal the importance of firm characteristics, technology transfer, and economic constraints that cause firms to conduct economic linkages across firm sizes and types of ownership. There is clear evidence for the determinants of economic linkages in manufacturing sectors by firm sizes, and by ownership in this analysis are concerned. To be specific, based on a regression analysis, employment, firm’s experience, technology transfer, and economic constraints stand out as the major drivers of economic linkage of various forms. In addition, results reveal several patterns of economic linkages such as domestic technology embodied economic linkage, local supply-chain technology embodied economic linkage, international/global supply-chain technology embodied economic linkage, local market-explored economic linkage, local market privilege, and foreign market privilege. Moreover, it is evidence that investments in basic infrastructure, transport infrastructure, communication infrastructure, removal of financing constraints, increase the labor supply, improvement of working skills of laborers have favored the growth of economic linkages. Our results initiate policy implications in the context that, apart from the firm’s and the industry sector’s characteristics, economic obstacles and the nature of technology transfer significantly influence the firm’s behaviors of conducting economic linkages in various firm sizes and types of ownership.

Keywords: Economic linkages; vertical (or backward) linkages, horizontal (or forward) linkages, key economic zone; manufacturing firms; Vietnam (search for similar items in EconPapers)
JEL-codes: M14 N14 (search for similar items in EconPapers)
Date: 2021-03-01
New Economics Papers: this item is included in nep-cse, nep-isf, nep-sbm, nep-sea, nep-tra and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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