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

Figures & data

Table 1. Regression models

Model	Regression
1	LnTFPijt =δ0 + δ1Labijt + δ2Expijt + δ3Horjt + δ4Backjt + δ5Forwjt + δ6Expijt*Horjt + δ7Expijt*Backjt + δ8Expijt*Forwjt + δ9Techijt + δ10Scaleijt + δ11HHIjt + αi + αt + αj + μijt
2	LnTFPijt = δ0 + δ1Labijt + δ2ExIijt + δ3Horjt + δ4Backjt + δ5Forwjt + δ6ExIijt*Horjt + δ7ExIijt*Backjt + δ8ExIijt*Forwjt + δ9Techijt + δ10Scaleijt + δ11HHIjt + αi + αt + αj + μijt

Table 2. Variables used in the study

Variables	Definition
LnTFP	Total factor productivity is measured by LP method from step 1 by Levinsohn and Petrin (2003)
Lab	Represents the skills of workers that affect the productivity of firm i and in logarit. As the firm-specific data on the number of skilled workers are not available, labour costs (including wages and training costs) per employee are used as a proxy for the human capital stock of the firm. This is based on an assumption that firms with higher average labour costs per worker employ higher skilled labour . (Le & Pomfret, 2011)
Exp	Dummy on exporting: takes the value of 1 if firm i in industry j exports during year t; 0 otherwise.
ExI	is the relative share of firm i’s exports in industry j in year t (Anwar & Nguyen, 2011)
Hor	the proportion of output accounted for by foreign firms in that industry j. (Javorcik & Spatareanu, 2011)
Back	${\sum }_{r=1}^p{\alpha }_{jrt}\ast horizonta{l}_{rt};{\alpha }_{jrt}$ is the proportion of industry r’s output supplied to industry j. the values of ${\alpha }_{jrt}$ from 2009 to 2015 are based on the 2012 input—output (IO) table calculated by GSO Vietnam. (Javorcik & Spatareanu, 2011)
Forw	${\sum }_{r=1}^p{\beta }_{jrt}\ast horizonta{l}_{rt};{\beta }_{jrt}$ is the proportion of industry j’s output supplied to industry r. the values of ${\beta }_{jrt}$ from 2009 to 2015 are based on the 2012 input—output (IO) table calculated by GSO Vietnam. (Javorcik & Spatareanu, 2011)
Tech	Technology gap, measured as the ratio of the productivity gap of firm i to the average productivity of FDI enterprises of the industry. (Le & Pomfret, 2011)
HHI	HHI = ${\sum }_i{\left(\frac{x_{ijt}}{X_{jt}}\right)}^2$ where xij t is the sales of domestic firm i in industry j; Xjt denotes the total sales of industry j. A higher value of the Herfindahl index indicates a high degree of industry concentration, thus less competition. (Ni et al., 2017)
Scale	sales of each of the domestic firms i relative to the total industry j sales in period t.
${\alpha }_i;{\alpha }_t;{\alpha }_j$,$\mu ijt$	the dummy variables the usual error term

Figure 1. Descriptive statistics–Export and non-export firms.

Figure 2. Descriptive statistics–FDI and domestic firms.

Table 3. The pairwise correlation coefficients

Variables		1	2	3	4	5	6	7	8	9	10
1	LnTFP	1.000
2	Lab	0.183***	1.000
3	Exp	0.092***	0.073***	1.000
4	ExI	0.019***	0.017***	0.072***	1.000
5	Hor	0.123***	0.198***	0.067***	0.229*	1.000
6	Back	−0.033***	0.015***	0.104***	0.009**	0.417**	1.000
7	Forw	−0.006***	0.021***	0.059***	0.007***	0.328***	0.655***	1.000
8	HHI	−0.075***	−0.053***	0.008***	0.013***	0.530***	0.133***	0.145***	1.000
9	Tech	−0.147***	−0.036***	0.002***	−0.003***	0.371***	0.012***	0.006***	−0.007***	1.000
10	Scale	0.058***	0.040***	0.053***	0.111***	0.257***	0.019***	0.015***	0.072***	−0.082***	1.000

Notes: *, **, and *** significant at 10 per cent, 5 per cent, and 1 per cent, respectively.

Table 4. Modified wald and wooldridge tests

	Wooldridge test			Modified Wald test
	F-test	p-value	Presence of autocorrelation	χ^2	p-value	Presence of heteroskedasticity
Model 1	801.121	0.000	√	4.7e+42	0.000	√
Model 2	789.077	0.000	√	5.2e+41	0.000	√

Table 5. Hausman test

	Chi-sq. statistic	Prob.
Model 1	17,515.97	0.000***
Model 2	16,386.13	0.000***

Notes: *** significant at 1%.

Table 6. Estimated results of impacts to export participation—Model 1

Variables	lnTFP	lnTFP
Lab	0.042***	0.042**
Exp	0.431***	0.379***
Hor	−0.251	−0.270
Back	−0.264**	−0.284*
Forw	−0.043	−0.036
Exp*Hor		0.445**
Exp*Back		0.274***
Exp*Forw		−0.153***
Tech	−0.540***	−0.540***
HHI	0.168	0.167
Scale	5.562***	5.520***
Cons	1.716***	1.719***
R^2	0.02	0.02
N	1,104,994	1,104,994

Notes: *, **, and *** significant at 10 per cent, 5 per cent, and 1 per cent, respectively.

For definitions of the variables, see, Table 2.

Table 7. Estimated results of export ability and spillover effects to TFP of local firms—Model 2

	lnTFP	lnTFP
Lab	0.196***	0.198***
ExpI	0.015*	0.001
Hor	−0.440**	−0.545**
Back	0.499***	0.559***
Forw	0.014	−0.004
ExI*Hor		0.292**
ExI*Back		−0.166*
ExI*Forw		−0.007
Tech	−0.075***	−0.075***
HHI	−0.821***	−0.759***
Scale	3.271**	4.692***
Cons	3.440***	3.445***
R^2	0.15	0.15
N	36,930	36,930

Notes: *, **, and *** significant at 10 per cent, 5 per cent, and 1 per cent, respectively.

For definitions of the variables, see, Table 2.

Table 8. Estimated results of export ability and spillover effects to TFP of local firms—with GMM technique

	Model 1	Model 2
Lab	0.165***	0.595***
Exp	0.293**
ExpI		0.821**
Hor	−0.466**	1.207**
Back	0.719***	−0.931**
Forw	0.112*	−0.912***
Exp*Hor	2.896***
Exp*Back	−2.314***
Exp*Forw	−1.722***
ExI*Hor		4.300**
ExI*Back		−3.025**
ExI*Forw		−1.883
Tech	−0.003***	−0.350***
HHI	−7.719***	1.604***
Scale	6.267***	8.491***
Cons	−0.079***	2.564***
AR(2) test	0.106	0.865
Sargan test	0.385	0.378
Hansen test	0.480	0.219

Notes: *, **, and *** significant at 10 per cent, 5 per cent, and 1 per cent, respectively.

For definitions of the variables, refer to Table 2.

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