Acta Univ. Agric. Silvic. Mendelianae Brun. 2017, 65(3), 1075-1084 | DOI: 10.11118/actaun201765031075

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

Hoang Duong Vu1,2, Van Hung Le2
1 Tomas Bata University in Zlin, nám. T. G. Masaryka 5555, 760 01 Zlín, Czech Republic
2 Vietnam 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.

Keywords: FDI spill-over effects, absorptive capacity, technical efficiency, Vietnam

Prepublished online: July 3, 2017; Published: May 1, 2017  Show citation

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Vu, H.D., & Van Hung, L. (2017). FDI Spill-Overs, Absorptive Capacity and Domestic Firms' Technical Efficiency in Vietnamese Wearing Apparel Industry. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 65(3), 1075-1084. doi: 10.11118/actaun201765031075
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