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FDI and Domestic Firms’ Export Behaviour: Evidence from Vietnam *
Author(s) -
Nguyen Dao Thi Hong,
Sun Sizhong
Publication year - 2012
Publication title -
economic papers: a journal of applied economics and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.245
H-Index - 19
eISSN - 1759-3441
pISSN - 0812-0439
DOI - 10.1111/j.1759-3441.2012.00180.x
Subject(s) - foreign direct investment , spillover effect , competition (biology) , wage , sample (material) , manufacturing sector , international economics , economics , business , investment (military) , monetary economics , labour economics , demographic economics , macroeconomics , ecology , chemistry , chromatography , politics , political science , law , biology
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.