Acta Univ. Agric. Silvic. Mendelianae Brun. 2017, 65, 1075-1084
Published online 2017-07-03

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

Hoang Duong Vu1,2, Van Hung Le2

1Tomas Bata University in Zlin, nám. T. G. Masaryka 5555, 760 01 Zlín, Czech Republic
2Vietnam Institute of Economics, Vietnam Academy of Social Sciences, Vietnam, 1B Lieu Giai, Ba Dinh, Hanoi, Vietnam

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.


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