IDEAS home Printed from https://ideas.repec.org/a/cii/cepiie/2020-q3-163-3.html
   My bibliography  Save this article

The threshold of absorptive capacity: The case of Vietnamese manufacturing firms

Author

Listed:
  • Vu Hoang Duong

Abstract

The paper empirically examines the impact of foreign direct investment spillovers on the performance of Vietnamese manufacturing firms from 2007 to 2015, and the role exerted by absorptive capacity on this relationship. Importantly, it is expected that the thresholds of absorptive capacity of the domestic firms exist, and the benefits which local firms enjoy can vary subject to the thresholds. This paper applies a threshold fixed effect model with panel data in Vietnam to show several findings. Firstly, the domestic firms can benefit from spillovers via the horizontal channel and backward linkage. Secondly, absorptive capacity is a vital factor in linking horizontal spillovers to local firms. Finally, the paper finds that there are thresholds of absorptive capacity in the case of Vietnam.

Suggested Citation

  • Vu Hoang Duong, 2020. "The threshold of absorptive capacity: The case of Vietnamese manufacturing firms," International Economics, CEPII research center, issue 163, pages 44-57.
  • Handle: RePEc:cii:cepiie:2020-q3-163-3
    as

    Download full text from publisher

    File URL: https://www.sciencedirect.com/science/article/pii/S2110701719300769
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Absorptive capacity; FDI spillovers; Threshold;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cii:cepiie:2020-q3-163-3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/cepiifr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.