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This is a pioneer study investigating the relationship between environmental compliance and TFP convergence for SMEs. It examines the impacts of environmental compliance, and its combination with innovation, on TFP convergence of manufacturing SMEs. We applied the dynamic panel regression method to estimate stochastic TFP. We find evidence of a β-convergence but a σ-divergence. Impacts of environmental practices of firms-pollution abatement and control expenditure, and environmental treatment-are only significant through their interaction with innovation. The β-convergence in firms' TFP is influenced by their industrial identity, while firms' size and investment have marginal impacts.

Purpose: This paper aims to investigate the impacts of political connections on farming households' performance, especially in tea production.Methodology/Approach: The Box-Cox methodology is applied using the primary data surveyed on 244 tea farming households in Vietnam. Findings:The findings show the significant role of political connection on improving farming households' income, particularly to members of the Communist Party, Youth Union and Farmer's Union. However, the interaction effects of Farmer's Union, Youth Union, Veteran's Union and Communist Party with land has negatively significant impact on farming household income.Practical Implications: The evidences point out the capacity of improving tea producers' income could be really potential implying most of existing related policies which should be adjusted.Originality/Value: This is the first research examining the impact of political connection on agricultural performance, especially in tea production. The impacts are estimated in de-tail; such as participating more on Veteran's, Farmer's, Youth Union and Communist Party may reduce time on cultivating; as a result, cultivated land could be reduced. Basing on these findings, we also suggest some appropriate policy implications related to the issue how to improve income of tea production households.

Cette recherche examine le lien entre la conformité environnementale, l’innovation et la convergence de la productivité totale des facteurs. Nous utilisons deux mesures de pratiques environnementales : la norme de certification environnementale et le traitment environnemental. Quant à l’innovation, il s’agit d’une variable qualitative ayant trois modalités croissantes : aucune innovation, innovation de produit ou de procédé et deux types d’innovation. En utilisant une base de données des petites et moyennes entreprises manufacturières vietnamiennes entre 2007 et 2015, les pratiques environnementales ne sont pas corrélées avec la productivité totale des facteurs. En revanche, il existe une forte corrélation entre l’innovation et le traitement environnemental. Les facteurs qui contribuent au taux de croissance de la productivité des entreprises, et par conséquent à la vitesse de convergence, sont l’innovation, la taille de l’entreprise et la forme juridique.