Productivity spillovers from foreign direct investment to domestic firms of Vietnam

Crawford School of Public Policy
Photo by ILO Asia-Pacific on Flickr

Event details

PhD Seminar (Econ)

Date & time

Tuesday 03 August 2021


Weston Theatre , Crawford School of Public Policy, No 132, Lennox Crossing, The ANU


Hai Thanh Nguyen

Does productivity of subsidiaries of MNEs spill over to the domestic firms in a given host country? Does the degree of foreign ownership of subsidiaries matter for productivity spillover? Does MNEs’ engagement in global production networks influence the nature and magnitude of spillover effects? The purpose of this paper is to examine these issues using an establishment-level panel dataset for Vietnamese manufacturing from 2006 to 2017. The results indicate significant productivity spillover from MNE subsidiaries to local firms. Productivity gains of domestic firms are greater from joint ventures than from fully-owned foreign firms. Local firms operating within global production networks benefit more from the foreign presence compared to those involved in horizontal specialization.

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