Does foreign investment benefit the exporting activities of Vietnamese firms?

Ha, TC Van; Holmes, Mark J.; Hassan, Gazi

doi:10.1111/twec.12912

Cited by 13 publications

(2 citation statements)

References 54 publications

(103 reference statements)

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“…Most of these studies confirm the existence of significant export spillovers, showing that the indirect effects of foreign direct investment are positive (Aitken et al, 1997; Greenaway et al, 2004; Sun & Anwar, 2017; Thompson & Zang, 2020). Ha et al (2020) and Kim and Xin (2021) report mixed results, indicating positive vertical and negative horizontal export spillovers in Vietnamese and Chinese manufacturing industries. In contrast, Kneller and Pisu (2007) and Sjöholm (2003) find no significant indirect export effects.…”

Section: Literature Reviewmentioning

confidence: 99%

Exporting decision of agricultural firms: The role of foreign direct investment

Kastratović

2023

Agribusiness

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In this study, we examine how foreign direct investment affects agricultural firms' exporting decisions. We investigate this by using a Tobit model of export intensity, estimated on the sample of 104 Serbian agricultural firms observed in the period 2014–2017. In particular, we considered both direct and indirect export effects of foreign direct investment. The results indicate that foreign ownership positively affects firms' export intensity. Furthermore, we find that the effect is conditional on the origin of foreign capital, the strongest effects being associated with capital coming from bordering countries. Finally, the results show that the indirect effects of foreign direct investment on export are mainly negative. The results imply that agricultural firms which are a part of the system of multinational enterprises have lower costs of exporting, due to their reliance on international distribution networks and the information on foreign markets provided by the parent companies. In contrast, the costs of production for the local firms could be increased due to the intensive competition by the foreign affiliates. This means that foreign direct investment has the potential to improve the export performances of host‐country agricultural firms. However, to realize their full potential, a sufficient absorptive capacity of the local firms is required. [EconLit Citations: F21, F23, Q17].

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Section: Literature Reviewmentioning

confidence: 99%

Exporting decision of agricultural firms: The role of foreign direct investment

Kastratović

2023

Agribusiness

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“…where FP i;j;t is productivity of firm i in industry j at time t, measured by value added per labor. There are two most common measures way to measure firm productivity including value added per labor (Bisztray et al, 2023;Chen et al, 2021;Junge et al, 2016;Croce et al, 2013) and total factor productivity (TFP) (Ha et al, 2020;Newman et al, 2015). We provide our analysis using both measures as the outcome variable.…”

Section: Model Specificationmentioning

confidence: 99%

Does corruption grease or sand the wheels of firm productivity? Evidence of a non-linear relationship from a firm-level analysis in Vietnam

Ha,

Nguyen Chau,

Pham

et al. 2023

JES

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PurposeThis analysis examines the relationship between corruption and firm productivity in Vietnam.Design/methodology/approachThe authors apply the system generalized method of moments estimation approach on a panel dataset constructed from comprehensive enterprise surveys covering all the sectors over the 2011–2020 period.FindingsThe results confirm a non-linear relationship between corruption and firm productivity. Where corruption is severe, leaving corruption alone tends to benefit firm productivity because efforts to control corruption are likely to cause greater delays. In less corrupt provinces, corruption appears to harm firm productivity while efforts to control corruption provide significant productivity gains. This U-shaped relationship is confirmed for small firms and those in the private sector sub-samples. Intriguingly, this study reveals that the U-shaped relationship does not apply to micro, medium, large firms, state-owned firms and foreign-invested firms because corruption is found to have no significant impact on productivity among these sub-samples. Changes in regulations after 2014 toward promoting a transparent business environment are shown to foster the positive impact of lowering corruption on firm productivity.Research limitations/implicationsThis study suggests that lowering corruption is beneficial for firm productivity at the micro level. However, where corruption is severe, monitoring corruption alone is likely to cause adverse effects on productivity due to increased bureaucratic delays. Institutional reforms might play an important role in leveraging the effects of lowering corruption on productivity in highly corrupt areas.Originality/valueThis paper sheds new light on the relationship between corruption and firm productivity in the broad existing literature and especially in the limited number of studies for Vietnam.

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Multinational enterprises and local firms’ export market entry: A panel data analysis of Vietnam's food processing industry

Nguyen,

Kokko,

Nguyen

2023

Agribusiness

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This study develops new insights into the spillover effects of foreign multinational enterprises (MNEs) on local firms’ export market entry, using the case of Vietnam—a notable global manufacturing hub located in Southeast Asia. The empirical analysis is based on a disaggregated firm‐level panel dataset of 25,032 observations of Vietnamese food processing firms during the period 2011–2016. The food processing industry is an essential part of the country's thriving manufacturing sector, with enormous potential for exports. The random‐effects Probit estimation results suggest that the presence of foreign MNEs significantly raises the likelihood that private local firms become exporters and thereby start integrating into global value chains. Further regressions reveal that foreign presence is also linked to higher export intensity among domestic firms, and that the magnitude of the estimated spillover effects is conditional on the specific measures of foreign MNE presence, the ownership structure in local industry, and the size of local firms. The findings highlight the considerable potential for foreign MNEs to influence local firms’ export prospects and validate the policy efforts to attract foreign direct investment inflows to the examined industry.

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Does foreign investment benefit the exporting activities of Vietnamese firms?

Cited by 13 publications

References 54 publications

Exporting decision of agricultural firms: The role of foreign direct investment

Exporting decision of agricultural firms: The role of foreign direct investment

Does corruption grease or sand the wheels of firm productivity? Evidence of a non-linear relationship from a firm-level analysis in Vietnam

Multinational enterprises and local firms’ export market entry: A panel data analysis of Vietnam's food processing industry

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