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Host-site institutions, Regional Production Linkages and Technological Upgrading: A Study of Automotive Firms in Vietnam

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  • NGUYEN Dinh Chuc

    (Vietnam Central Institute of Economic Management)

  • NGUYEN Dinh Anh

    (Development and Policies Research Center)

  • NGUYEN Ha Trang
  • NGUYEN Ngoc Minh

    (Development and Policies Research Center)

Abstract

Using technological capabilities that take account of technology embodied in machinery, organization, processes and products, this article examines its link with host-site institutions and regional production linkages. The statistical results show no relationship between these variables. In-depth interviews complement the quantitative findings. Overall, the result show that the government’s localization efforts failed because too many joint-venture assemblers were approved in the 1990s when the domestic market was small. The lack of economies of scale also affected the growth of national suppliers. Hence, national producers are confined to low value added segments and lack the quality to compete in export markets

Suggested Citation

  • NGUYEN Dinh Chuc & NGUYEN Dinh Anh & NGUYEN Ha Trang & NGUYEN Ngoc Minh, 2015. "Host-site institutions, Regional Production Linkages and Technological Upgrading: A Study of Automotive Firms in Vietnam," Working Papers DP-2015-11, Economic Research Institute for ASEAN and East Asia (ERIA).
  • Handle: RePEc:era:wpaper:dp-2015-11
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    References listed on IDEAS

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    1. Lall, Sanjaya, 1992. "Technological capabilities and industrialization," World Development, Elsevier, vol. 20(2), pages 165-186, February.
    2. Rajah Rasiah, 2011. "Ownership and Technological Capabilities: Evidence from Automotive Firms in Brazil, India and South Africa," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 3(2), pages 203-234, July.
    3. Richard Nelson, 2008. "Economic Development from the Perspective of Evolutionary Economic Theory," Oxford Development Studies, Taylor & Francis Journals, vol. 36(1), pages 9-21.
    4. Damijan, Jože P. & Rojec, Matija & Majcen, Boris & Knell, Mark, 2013. "Impact of firm heterogeneity on direct and spillover effects of FDI: Micro-evidence from ten transition countries," Journal of Comparative Economics, Elsevier, vol. 41(3), pages 895-922.
    5. Nebahat Tokatli, 2007. "Asymmetrical power relations and upgrading among suppliers of global clothing brands: Hugo Boss in Turkey," Journal of Economic Geography, Oxford University Press, vol. 7(1), pages 67-92, January.
    6. Petr Pavlínek & Jan Ženka, 2011. "Upgrading in the automotive industry: firm-level evidence from Central Europe," Journal of Economic Geography, Oxford University Press, vol. 11(3), pages 559-586, May.
    7. Warr, Peter G, 1989. "Export Processing Zones: The Economics of Enclave Manufacturing," World Bank Research Observer, World Bank Group, vol. 4(1), pages 65-88, January.
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    More about this item

    Keywords

    automotive; investment; regional production linkages; technological capabilities; Vietnam;

    JEL classification:

    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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