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

• Main Authors: Hoang Duong Vu, Van Hung Le
• Format: Article
• Language: English
• Published: Mendel University Press 2017-01-01
• Series: Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis
• Subjects: FDI spill‑over effects; absorptive capacity; technical efficiency; Vietnam
• Online Access: https://acta.mendelu.cz/65/3/1075/

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.