Impacts of FDI Linkages on the Labor Productivity of Domestic Firms: The Role of Local Business Environment
This study contributes to the literature on the spillovers of foreign direct investment by presenting empirical evidence on the impact of linkages with foreign-invested firms on the productivity of domestic firms in different local business environments. Using longitudinal data in a transitional eco...
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| Format: | Article |
| Language: | English |
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SAGE Publishing
2025-08-01
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| Series: | SAGE Open |
| Online Access: | https://doi.org/10.1177/21582440251362392 |
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| _version_ | 1849224422496403456 |
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| author | Nam Hoang Vu Bich Ngoc Thi Le Thanh Le |
| author_facet | Nam Hoang Vu Bich Ngoc Thi Le Thanh Le |
| author_sort | Nam Hoang Vu |
| collection | DOAJ |
| description | This study contributes to the literature on the spillovers of foreign direct investment by presenting empirical evidence on the impact of linkages with foreign-invested firms on the productivity of domestic firms in different local business environments. Using longitudinal data in a transitional economy of Vietnam from 2012 to 2018 and applying different estimation techniques to deal with the potential endogeneity problem, the study shows that linkages with foreign-invested firms have a positive impact on the labor productivity of domestic firms. This relationship is significantly enhanced in an improved local business environment. Additionally, this enhancement effect is observed among firms with a smaller size and those operating in medium- and high-technology industries. The findings suggest important implications to support businesses through improving the local business environment in transition economies. |
| format | Article |
| id | doaj-art-22acb72f92d44a9ea9cefd3bea8be2a5 |
| institution | Kabale University |
| issn | 2158-2440 |
| language | English |
| publishDate | 2025-08-01 |
| publisher | SAGE Publishing |
| record_format | Article |
| series | SAGE Open |
| spelling | doaj-art-22acb72f92d44a9ea9cefd3bea8be2a52025-08-25T10:03:46ZengSAGE PublishingSAGE Open2158-24402025-08-011510.1177/21582440251362392Impacts of FDI Linkages on the Labor Productivity of Domestic Firms: The Role of Local Business EnvironmentNam Hoang Vu0Bich Ngoc Thi Le1Thanh Le2 Foreign Trade University, Hanoi, Vietnam Academy of Finance, Hanoi, Vietnam University of Wollongong, NSW, AustraliaThis study contributes to the literature on the spillovers of foreign direct investment by presenting empirical evidence on the impact of linkages with foreign-invested firms on the productivity of domestic firms in different local business environments. Using longitudinal data in a transitional economy of Vietnam from 2012 to 2018 and applying different estimation techniques to deal with the potential endogeneity problem, the study shows that linkages with foreign-invested firms have a positive impact on the labor productivity of domestic firms. This relationship is significantly enhanced in an improved local business environment. Additionally, this enhancement effect is observed among firms with a smaller size and those operating in medium- and high-technology industries. The findings suggest important implications to support businesses through improving the local business environment in transition economies.https://doi.org/10.1177/21582440251362392 |
| spellingShingle | Nam Hoang Vu Bich Ngoc Thi Le Thanh Le Impacts of FDI Linkages on the Labor Productivity of Domestic Firms: The Role of Local Business Environment SAGE Open |
| title | Impacts of FDI Linkages on the Labor Productivity of Domestic Firms: The Role of Local Business Environment |
| title_full | Impacts of FDI Linkages on the Labor Productivity of Domestic Firms: The Role of Local Business Environment |
| title_fullStr | Impacts of FDI Linkages on the Labor Productivity of Domestic Firms: The Role of Local Business Environment |
| title_full_unstemmed | Impacts of FDI Linkages on the Labor Productivity of Domestic Firms: The Role of Local Business Environment |
| title_short | Impacts of FDI Linkages on the Labor Productivity of Domestic Firms: The Role of Local Business Environment |
| title_sort | impacts of fdi linkages on the labor productivity of domestic firms the role of local business environment |
| url | https://doi.org/10.1177/21582440251362392 |
| work_keys_str_mv | AT namhoangvu impactsoffdilinkagesonthelaborproductivityofdomesticfirmstheroleoflocalbusinessenvironment AT bichngocthile impactsoffdilinkagesonthelaborproductivityofdomesticfirmstheroleoflocalbusinessenvironment AT thanhle impactsoffdilinkagesonthelaborproductivityofdomesticfirmstheroleoflocalbusinessenvironment |