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Do Direct Foreign Investments Increase Efficiency Convergence at Firm Level? The Case of Vietnam, 2000-2011

Author

Listed:
  • Nguyen Khac Minh

    (Member of the scientific council, National Economics University (NEU), 207 Giai Phong Street, Hai Ba Trung District, Hanoi, Vietnam.)

  • Nguyen Viet Hung

    (Faculty of Economics, National Economics University (NEU), 207 Giai Phong Street, Hai Ba Trung District, Hanoi, Vietnam,)

  • Pham Van Khanh

    (Faculty of Information Technology, Military Technical Academy (MTA), 236 Hoang Quoc Viet Street, Cau Giay District, Hanoi, Vietnam,)

  • Ha Quynh Hoa

    (Faculty of Economics, National Economics University (NEU), 207 Giai Phong Street, Hai Ba Trung District, Hanoi, Vietnam,)

Abstract

The objective of this study is to assess the extent to which the effect of FDI on firms’ efficiency and efficiency convergence across industries in Vietnam. Dynamic input output tables are used to construct the linkages between domestic and foreign firms. Stochastic production frontier is used to estimate firms ‘efficiency with a large panel dataset covering manufacturing firms in Vietnam from 2000 to 2011. The analysis shows that, the impact of FDI on domestic firms ‘efficiency score and convergence at firms’ level through the horizontal, backward and supply backward channels are negative and different.

Suggested Citation

  • Nguyen Khac Minh & Nguyen Viet Hung & Pham Van Khanh & Ha Quynh Hoa, 2014. "Do Direct Foreign Investments Increase Efficiency Convergence at Firm Level? The Case of Vietnam, 2000-2011," International Journal of Business and Social Research, LAR Center Press, vol. 4(7), pages 109-119, July.
    • Handle: RePEc:lrc:larijb:v:4:y:2014:i:7:p:109-119
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    References listed on IDEAS

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