Spatial spillover effects from foreign direct investment in Vietnam

TRAN, Toan Thang, PHAM, Thi Song Hanh and BARNES, Bradley Richard (2016). Spatial spillover effects from foreign direct investment in Vietnam. The Journal of Development Studies, 52 (10), 1431-1445.

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Link to published version:: 10.1080/00220388.2016.1166205


This paper investigates the role of inter-firm interaction and geographical proximity in the determination of productivity spillover effects from foreign to domestic firms. We developed an estimation approach using the Spatial Durbin model and applied this to a firm-level dataset from Vietnam from 2000-2005. We found that productivity spillovers diminished when the distance between foreign and firms increase and that interactions among local firms amplify the spillovers. Within short distances, the presence of foreign firms creates positive backward, negative forward and horizontal spillovers. Based on the findings, several implications are extracted regarding promotion policy for FDI in developing countries.

Item Type: Article
Research Institute, Centre or Group: Sheffield Business School Research Institute > International Business, Economics, SMEs and Entrepreneurship
Identification Number: 10.1080/00220388.2016.1166205
Depositing User: Song Hanh Pham
Date Deposited: 22 Mar 2016 14:38
Last Modified: 20 Oct 2016 00:23

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