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

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  • Franco, Chiara
  • Sanfilippo, Marco
  • Seric, Adnan

Abstract

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.

Suggested Citation

  • Franco, Chiara & Sanfilippo, Marco & Seric, Adnan, 2015. "What makes linkages "good" linkages? Firms, the investment climate and business support services in Vietnam," IOB Working Papers 2015.09, Universiteit Antwerpen, Institute of Development Policy (IOB).
    • Handle: RePEc:iob:wpaper:201509
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    More about this item

    Keywords

    FDI; linkages; business climate; Vietnam;
    All these keywords.

    JEL classification:

    • F45 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Macroeconomic Issues of Monetary Unions
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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