Journal article
Absorptive capacity, foreign direct investment-linked spillovers and economic growth in Vietnam
Asian Business and Management, Vol.9(4), pp.553-570
2010
Abstract
Before the introduction of the economic reform process in the late 1980s, the Vietnamese economy was operating under a centrally planned system. The reform process resulted in the integration of Vietnam into the world economy, which led to significant increase in foreign investment. By making use of panel data on 22 manufacturing industries over the period 1995-2005, this article examines the impact of foreign direct investment (FDI)-generated spillovers on manufacturing sector growth in Vietnam. Unlike most existing studies, which are limited to considering the effect of FDI on economic growth, this article focuses on the impact of FDI-linked spillovers that take place through both horizontal and vertical linkages between domestic and foreign firms. The empirical results presented here suggest that FDI-generated spillovers have made a significant contribution to manufacturing sector growth in Vietnam through vertical-backward linkages. The positive impact of vertical-backward linkages on manufacturing sector growth is strengthened by the stock of human capital. Specifically, manufacturing industries with a larger stock of human capital have experienced a higher level of technological advancement and hence stronger economic growth.
Details
- Title
- Absorptive capacity, foreign direct investment-linked spillovers and economic growth in Vietnam
- Authors
- Sajid Anwar (Author) - University of the Sunshine Coast - Faculty of BusinessL P Nguyen (Author) - State Bank of Vietnam, Vietnam
- Publication details
- Asian Business and Management, Vol.9(4), pp.553-570
- Publisher
- Palgrave MacMillan Ltd.
- Date published
- 2010
- DOI
- 10.1057/abm.2010.28
- ISSN
- 1472-4782
- Organisation Unit
- School of Business and Creative Industries; Indigenous and Transcultural Research Centre; University of the Sunshine Coast, Queensland; USC Business School - Legacy
- Language
- English
- Record Identifier
- 99449546702621
- Output Type
- Journal article
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