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

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  • Hien T. N. Huynh
  • Phuong V. Nguyen
  • Hoa D. X. Trieu
  • Khoa T. Tran

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.

Suggested Citation

  • Hien T. N. Huynh & Phuong V. Nguyen & Hoa D. X. Trieu & Khoa T. Tran, 2021. "Productivity Spillover from FDI to Domestic Firms across Six Regions in Vietnam," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 57(1), pages 59-75, January.
    • Handle: RePEc:mes:emfitr:v:57:y:2021:i:1:p:59-75
    DOI: 10.1080/1540496X.2018.1562892
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    2. Miao Zhang & Rui Yang, 2022. "FDI and spillovers: New evidence from Malaysia’s manufacturing sector," Review of Development Economics, Wiley Blackwell, vol. 26(2), pages 847-877, May.
    3. Gibogwe, Vincent & Nigo, Ayine R.S. & Kufuor, Karen, 2022. "Foreign direct investment and economic growth in Tanzania," MPRA Paper 115028, University Library of Munich, Germany, revised 20 Oct 2022.
    4. Sarker, Bibhuti & Serieux, John, 2022. "Foreign-invested and domestic firm attributes and spillover effects: Evidence from Brazil," Journal of Multinational Financial Management, Elsevier, vol. 63(C).

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