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Emerging Markets Finance and Trade Volume 57, 2021 - Issue 1
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VBER 2017 Conference, 16-18 November 2017, Ho Chi Minh City, Vietnam

Productivity Spillover from FDI to Domestic Firms across Six Regions in Vietnam

Hien T. N. Huynh1 The School of Business, International University, Vietnam National University, Ho Chi Minh City, VietnamView further author information
,
Phuong V. Nguyen2 Center For Higher Training and Research in Public Administration, International University,Vietnam National University, Ho Chi Minh City, VietnamCorrespondence[email protected]
View further author information
,
Hoa D. X. Trieu1 The School of Business, International University, Vietnam National University, Ho Chi Minh City, VietnamView further author information
&
Khoa T. Tran2 Center For Higher Training and Research in Public Administration, International University,Vietnam National University, Ho Chi Minh City, VietnamView further author information
Pages 59-75 | Published online: 21 Jan 2019
 
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ABSTRACT

The article uses the latest firm-level data in Vietnam, from 2011 to 2015, to find fresh evidence on productivity spillovers from foreign direct investment across six regions in Vietnam. The finding indicates negative horizontal spillover as the most dominant channel in all regions. The positive backward spillover is compensated for by the large magnitude of negative horizontal and forward spillovers. Besides, absorptive capability really matters in productivity spillovers. Furthermore, total factor productivity growth at domestic firms within 100 sq. km. of foreign capital–intensive and administrative centers is similar to that of external firms under the effects of productivity spillover.

Supplementary material

Supplemental data for this article can be accessed here.

Additional information

Funding

This research is funded by the Vietnam National Foundation for Science and Technology Development (NAFOSTED) under grant number [502.01-2016.17].

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