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The role of environmental practices and innovation in total factor productivity convergence -Evidence from small-and medium-sized manufacturing enterprises in Vietnam

Author

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  • Thanh Tam Nguyen-Huu

    (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie)

  • Khac Minh Nguyen
  • Quoc Tran-Nam

Abstract

This research investigates the nexus between environmental compliance, innovation, and Total Factor Productivity convergence. We use two measures of environmental practices: the firm environmental standard certification and environmental treatment. As for innovation, it has three increasing-levels: no innovation, product or process innovation, and both types of innovation. Using a sample of Vietnamese small-and medium-sized manufacturing enterprises from 2007 to 2015, the environmental practices are not correlated with total factor productivity. By contrast, there is a strong correlation between innovation and environmental treatment. Factors contributing to the firm productivity growth rate, and consequently the speed of convergence, are innovation, firm size, and legal form.

Suggested Citation

  • Thanh Tam Nguyen-Huu & Khac Minh Nguyen & Quoc Tran-Nam, 2022. "The role of environmental practices and innovation in total factor productivity convergence -Evidence from small-and medium-sized manufacturing enterprises in Vietnam," Post-Print hal-04248191, HAL.
    • Handle: RePEc:hal:journl:hal-04248191
    DOI: 10.3917/redp.323.0453
    Note: View the original document on HAL open archive server: https://hal.science/hal-04248191
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    Keywords

    Innovation TFP growth rate β-convergence Environmental practices; Innovation; TFP growth rate; β-convergence; Environmental practices;
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