FDI and domestic firms' export behaviour in Vietnam: heterogeneity and policy implications

Nguyen, Dao Thi Hong;Sun, Sizhong

Abstract

This study investigates firms' export behaviour in the manufacturing sector in Vietnam, using a Heckman sample selection model estimated over firm-level data in 2003 and 2004. Empirical results indicate that (i) firm-specific characteristics have significant impacts on firm export behaviour; (ii) there exist significant export spillovers from foreign direct investment (FDI) to domestic firms; and (iii) spillovers are heterogeneous and depend on firm characteristics, Firm age, private ownership, average wage and import intensity are found to have positive and significant impacts on the spillover magnitude, whereas firm size and domestic competition exert negative and significant impacts.

Journal

Economic Papers

Publication Name

Economic Papers

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ISBN/ISSN

1759-3441

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Publisher

Wiley-Blackwell

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DOI

10.1111/j.1759-3441.2012.00180.x