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Technical efficiency of Vietnamese manufacturing firms: do FDI spillovers matter?

Author

Listed:
  • Canh Nguyen

    (VNU-HCM - Vietnam National University, Ho Chi Minh City / Đại học Quốc gia TP. Hồ Chí Minh)

  • Minh Le

    (Banking University of Hochiminh city)

  • Khoa Cai

    (Industrial University)

  • Michel Simioni

    (UMR MoISA - Montpellier Interdisciplinary center on Sustainable Agri-food systems (Social and nutritional sciences) - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - IRD - Institut de Recherche pour le Développement - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro - Montpellier SupAgro - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement)

Abstract

This paper investigates the spillover effect (backward, forward, and horizontal linkage) of foreign direct investment (FDI) firms on the technical efficiency of local firms. This research extends the literature by employing meta-frontier framework analysis which is superior to single stochastic analysis because each industry has a different combination of inputs (or dissimilar production technology). Using a large data set (178,700 firm-year observations), this paper finds evidence on the negative impact of the horizontal and forward linkages on the meta-technical inefficiency for the data set as a whole as well as in three economic regions, in private owned firms, and capital and labor-intensive sectors in Vietnam.

Suggested Citation

  • Canh Nguyen & Minh Le & Khoa Cai & Michel Simioni, 2021. "Technical efficiency of Vietnamese manufacturing firms: do FDI spillovers matter?," Post-Print hal-03145499, HAL.
    • Handle: RePEc:hal:journl:hal-03145499
    DOI: 10.3846/jbem.2021.14253
    Note: View the original document on HAL open archive server: https://hal.inrae.fr/hal-03145499v1
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    Keywords

    Meta-frontier framework; Meta translog inefficiency; Backward; Forward and horizontal linkage; Foreign direct investment; Vietnam.;
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