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What makes linkages "good" linkages? Firms, the investment climate and business support services in Vietnam

Listed author(s):
  • Franco, Chiara
  • Sanfilippo, Marco
  • Seric, Adnan

The role of backward linkages between foreign and local firms is considered as a crucial factor to favour the economic development of a country. This work tries to unveil its different dimensions with respect to the Vietnamese case. We develop our research questions in two steps. We first analyse what are the determinants of linkages, looking at both their extent and the capacity to set up a local supply chain. Then, we provide empirical evidence for the probability of linkages to be vehicles to enhance local firm’s capacity to benefit from FDI. Our main findings reveal that firm specific factors affect mainly the size of linkages, while it is the provision of key business support services to investors to determine the probability for linkages to become “good” linkages.

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File URL: https://www.uantwerpen.be/en/rg/institute-of-develop/publications/working-papers/wp-2015/wp-201509/
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Paper provided by Universiteit Antwerpen, Institute of Development Policy and Management (IOB) in its series IOB Working Papers with number 2015.09.

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Length: 33 pages
Date of creation: Dec 2015
Handle: RePEc:iob:wpaper:201509
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  16. Amendolagine, Vito & Boly, Amadou & Coniglio, Nicola Daniele & Prota, Francesco & Seric, Adnan, 2013. "FDI and Local Linkages in Developing Countries: Evidence from Sub-Saharan Africa," World Development, Elsevier, vol. 50(C), pages 41-56.
  17. Antonello Zanfei, 2012. "Effects, Not Externalities," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 24(1), pages 8-14, February.
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  22. Belderbos, Rene & Capannelli, Giovanni & Fukao, Kyoji, 2001. "Backward Vertical Linkages of Foreign Manufacturing Affiliates: Evidence from Japanese Multinationals," World Development, Elsevier, vol. 29(1), pages 189-208, January.
  23. Thomas Farole & Deborah Winkler, 2014. "Making Foreign Direct Investment Work for Sub-Saharan Africa : Local Spillovers and Competitiveness in Global Value Chains," World Bank Publications, The World Bank, number 16390, September.
  24. Theodore H. Moran, 2014. "Foreign Investment and Supply Chains in Emerging Markets: Recurring Problems and Demonstrated Solutions," Working Paper Series WP14-12, Peterson Institute for International Economics.
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