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Productivity-Enhancing Manufacturing Clusters: Evidence from Vietnam

Author

Listed:
  • Emma Howard
  • Carol Newman
  • John Rand
  • Finn Tarp

Abstract

In this paper we explore the extent to which firms experience productivity spillovers from clustering using a rich data source from Vietnam for 2002 to 2007, a period of significant transition. We address issues of simultaneity, self-selection and endogenous location choice of firms in an estimation of firm level productivity. Controlling for competition effects and distinguishing between urbanization and localization economies, we find strong evidence for productivity spillovers from clustering. The effects of these spillovers are found to be particularly large for foreign-owned firms.

Suggested Citation

  • Emma Howard & Carol Newman & John Rand & Finn Tarp, 2014. "Productivity-Enhancing Manufacturing Clusters: Evidence from Vietnam," WIDER Working Paper Series wp-2014-071, World Institute for Development Economic Research (UNU-WIDER).
  • Handle: RePEc:unu:wpaper:wp-2014-071
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    File URL: https://www.wider.unu.edu/sites/default/files/wp2014-071.pdf
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    References listed on IDEAS

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    1. Petri Böckerman & Pekka Ilmakunnas, 2012. "The Job Satisfaction-Productivity Nexus: A Study Using Matched Survey and Register Data," ILR Review, Cornell University, ILR School, vol. 65(2), pages 244-262, April.
    2. Helsley, Robert W. & Strange, William C., 1991. "Agglomeration economies and urban capital markets," Journal of Urban Economics, Elsevier, vol. 29(1), pages 96-112, January.
    3. Chhair, Sokty & Newman, Carol, 2014. "Clustering, competition, and spillover effects: Evidence from Cambodia," WIDER Working Paper Series 065, World Institute for Development Economic Research (UNU-WIDER).
    4. Jan De Loecker, 2013. "Detecting Learning by Exporting," American Economic Journal: Microeconomics, American Economic Association, vol. 5(3), pages 1-21, August.
    5. Henderson, J. Vernon, 2003. "Marshall's scale economies," Journal of Urban Economics, Elsevier, vol. 53(1), pages 1-28, January.
    6. Henderson, J. Vernon, 1986. "Efficiency of resource usage and city size," Journal of Urban Economics, Elsevier, vol. 19(1), pages 47-70, January.
    7. Diego Puga, 2010. "The Magnitude And Causes Of Agglomeration Economies," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 203-219, February.
    8. Fujita, Masahisa & Ogawa, Hideaki, 1982. "Multiple equilibria and structural transition of non-monocentric urban configurations," Regional Science and Urban Economics, Elsevier, vol. 12(2), pages 161-196, May.
    9. Bigsten, Arne & Gebreeyesus, Mulu & Siba, Eyerusalem & Soderbom, Måns, 2012. "Enterprise Agglomeration, Output Prices, and Physical Productivity: Firm-Level Evidence from Ethiopia," WIDER Working Paper Series 085, World Institute for Development Economic Research (UNU-WIDER).
    10. Glenn Ellison & Edward L. Glaeser & William R. Kerr, 2010. "What Causes Industry Agglomeration? Evidence from Coagglomeration Patterns," American Economic Review, American Economic Association, vol. 100(3), pages 1195-1213, June.
    11. repec:unu:wpaper:wp2012-084 is not listed on IDEAS
    12. Emma Howard & Carol Newman & Finn Tarp, 2016. "Measuring industry coagglomeration and identifying the driving forces," Journal of Economic Geography, Oxford University Press, vol. 16(5), pages 1055-1078.
    13. repec:unu:wpaper:wp2012-85 is not listed on IDEAS
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    Cited by:

    1. Stephan Kyburz, Huong Quynh Nguyen, 2017. "Does Proximity to Foreign Invested Firms Stimulate Productivity Growth of Domestic Firms? Firmlevel Evidence from Vietnam," Diskussionsschriften credresearchpaper16, Universitaet Bern, Departement Volkswirtschaft - CRED.

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