FDI Spill-Overs, Absorptive Capacity and Domestic Firms' Technical Efficiency in Vietnamese Wearing Apparel Industry

Duong Vu () and Le Van Hung
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Le Van Hung: Vietnam Institute of Economics, Vietnam Academy of Social Sciences, Vietnam, 1B Lieu Giai, Ba Dinh, Hanoi, Vietnam

Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 2017, vol. 65, issue 3, 1075-1084

Abstract: This study empirically examines relationship between FDI spill-overs and technical efficiency of domestic firms and role of the absorptive capacity of domestic firms. Data on Vietnamese Annual Enterprises Survey are exploited to build a firm-level panel data on the Vietnamese wearing apparel industry from 2009 to 2013. By applying stochastic production frontier model, this paper shows that there are positive vertical spill-over effects but no horizontal effects. Moreover, this study finds the negative impact of the absorptive capacity of domestic firms on benefits reaped from FDI externalities.

Keywords: FDI spill-over effects; absorptive capacity; technical efficiency; Vietnam (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:mup:actaun:actaun_2017065031075

DOI: 10.11118/actaun201765031075

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