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FDI Spill-Overs, Absorptive Capacity and Domestic Firms' Technical Efficiency in Vietnamese Wearing Apparel Industry

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  • Hoang Duong Vu

    (Tomas Bata University in Zlin, nám. T. G. Masaryka 5555, 760 01 Zlín, Czech Republic
    Vietnam Institute of Economics, Vietnam Academy of Social Sciences, Vietnam, 1B Lieu Giai, Ba Dinh, Hanoi, Vietnam)

  • Le Van Hung

    (Vietnam Institute of Economics, Vietnam Academy of Social Sciences, Vietnam, 1B Lieu Giai, Ba Dinh, Hanoi, Vietnam)

Abstract

This study empirically examines relationship between FDI spill-overs and technical efficiency of domestic firms and role of the absorptive capacity of domestic firms. Data on Vietnamese Annual Enterprises Survey are exploited to build a firm-level panel data on the Vietnamese wearing apparel industry from 2009 to 2013. By applying stochastic production frontier model, this paper shows that there are positive vertical spill-over effects but no horizontal effects. Moreover, this study finds the negative impact of the absorptive capacity of domestic firms on benefits reaped from FDI externalities.

Suggested Citation

  • Hoang Duong Vu & Le Van Hung, 2017. "FDI Spill-Overs, Absorptive Capacity and Domestic Firms' Technical Efficiency in Vietnamese Wearing Apparel Industry," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 65(3), pages 1075-1084.
    • Handle: RePEc:mup:actaun:actaun_2017065031075
    DOI: 10.11118/actaun201765031075
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