The impact of absorbing productivity spillover on export ability: evidence from an emerging market

Abstract

This paper examines spillover effects of foreign direct investment (FDI) through horizontal, backward, and forward linkages, and how these spillovers are driven by the exporting ability for Vietnamese manufacturing enterprises. Those participating in export activity can increase the spillover absorption from FDI through the horizontal and backward linkages although local firms are less likely to take advantage of productivity spillovers during this period. In addition, these exporting firms confront the productivity protection of the FDI firms in the same industries. In contrast, the higher their exportability is, the better their learning from the foreign firms in the same downstream sectors becomes. The findings of this paper provide valuable evidence and implications for policymakers in managing and enhancing export ability for firms in the emerging market.

Keywords:

• Spillover effects
• foreign direct investment
• export ability
• total factor productivity

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Funding

The authors received no direct funding for this research.

Notes on contributors

Pham Thi Bich Ngoc

Pham Thi Bich Ngoc is a senior lecturer of the International School of Business, University of Economics HCMC, Vietnam; former Dean of Faculty of Logistics- International Trade/ former director of Institute of Development and Applied Economics, Hoa Sen University, HCMC. Her researches have been published in more than 5 articles listed as: Emerging Markets Finance and Trade, Asian Journal of Economics and Banking. Email: [email protected]

Pham Dinh Long is Associate Professor of Economics, a senior lecturer of the International School of Business, University of Economics HCMC, Vietnam; former Vice Provost of Binh Duong Economic and Technology University. His researches have been published in more than 5 articles listed as: Emerging Markets Finance and Trade, Environmental Science and Pollution Research. Email: [email protected]

Pham Dinh Long

Pham Thi Bich Ngoc is a senior lecturer of the International School of Business, University of Economics HCMC, Vietnam; former Dean of Faculty of Logistics- International Trade/ former director of Institute of Development and Applied Economics, Hoa Sen University, HCMC. Her researches have been published in more than 5 articles listed as: Emerging Markets Finance and Trade, Asian Journal of Economics and Banking. Email: [email protected]

Pham Dinh Long is Associate Professor of Economics, a senior lecturer of the International School of Business, University of Economics HCMC, Vietnam; former Vice Provost of Binh Duong Economic and Technology University. His researches have been published in more than 5 articles listed as: Emerging Markets Finance and Trade, Environmental Science and Pollution Research. Email: [email protected]

Huynh Quoc Vu

Huynh Quoc Vu is a PhD candidate/researcher at Ho Chi Minh City Open University, Vietnam.