Journal article
Foreign direct investment and export spillovers: Evidence from Vietnam
International Business Review, Vol.20(2), pp.177-193
2011
Abstract
The existing IB literature suggests that the presence of foreign firms in a country can benefit domestic firms through the formation of inter-firm linkages. These linkages can take various forms. By making use of firm level data from Vietnam's manufacturing sector, this paper examines the impact of horizontal and vertical (backward and forward) linkages between domestic and foreign firms on (i) the decision of domestic firms to export and (ii) the export share of domestic firms. This paper considers only transactional linkages. The empirical analysis is based on Heckman's two-step estimator in selection models. It is shown that the presence of foreign firms in Vietnam, through horizontal and forward linkages, significantly affects the decision of domestic firms to export as well as their export share. This result continues to hold when we take into account factors such as the (a) level of technology of domestic firms, (b) ownership structure of domestic firms, (c) orientation of foreign firms and (d) geographical proximity to foreign firms.
Details
- Title
- Foreign direct investment and export spillovers: Evidence from Vietnam
- Authors
- Sajid Anwar (Author) - University of the Sunshine Coast - Faculty of BusinessL P Nguyen (Author) - State Bank of Vietnam, Vietnam
- Publication details
- International Business Review, Vol.20(2), pp.177-193
- Publisher
- Pergamon
- Date published
- 2011
- DOI
- 10.1016/j.ibusrev.2010.11.002
- ISSN
- 0969-5931
- 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
- 99449775202621
- Output Type
- Journal article
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