FDI spillover effect on the green productivity of Vietnam manufacturing firms: the role of absorptive capacity

This study examines the contribution of absorptive capacity to the relationship between FDI spillover effects and firm-level green total factor productivity (GTFP) using the Malmquist-Luenberger productivity index approach combined with a threshold regression model. Using firm-level data from annual...

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Main Authors: Phung Mai Lan, Nguyen Thuy Trang, Nguyen Khac Minh
Format: Article
Language:English
Published: Taylor & Francis Group 2024-12-01
Series:Journal of Applied Economics
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/15140326.2024.2382653
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author Phung Mai Lan
Nguyen Thuy Trang
Nguyen Khac Minh
author_facet Phung Mai Lan
Nguyen Thuy Trang
Nguyen Khac Minh
author_sort Phung Mai Lan
collection DOAJ
description This study examines the contribution of absorptive capacity to the relationship between FDI spillover effects and firm-level green total factor productivity (GTFP) using the Malmquist-Luenberger productivity index approach combined with a threshold regression model. Using firm-level data from annual enterprise surveys in Vietnam’s manufacturing and processing industries from 2013 to 2019, the study found that absorptive capacity had an important mediating role in amplifying the beneficial effects of FDI spillover. The magnitude of horizontal FDI spillover varies with absorptive capacity in medium high technology (MHT) sectors, while negative effects are observed in medium low technology (MLT) and low technology (LT) sectors. Firms with HT, MLT, and LT sectors have positive backward effects on productivity if their absorptive capacity exceeds a particular threshold. Furthermore, our findings point to specific factors that may be crucial in improving absorptive capacity, such as internal research and development, process improvement, and export.
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spelling doaj-art-5d20651c4ced48d38fb84a20b7579cc22024-11-22T09:09:02ZengTaylor & Francis GroupJournal of Applied Economics1514-03261667-67262024-12-0127110.1080/15140326.2024.2382653FDI spillover effect on the green productivity of Vietnam manufacturing firms: the role of absorptive capacityPhung Mai Lan0Nguyen Thuy Trang1Nguyen Khac Minh2The Faculty of Economics and Management, Thuyloi University, Hanoi, VietnamThe Faculty of Economics and Management, Thuyloi University, Hanoi, VietnamTIMAS, Thang Long University, Hanoi, VietnamThis study examines the contribution of absorptive capacity to the relationship between FDI spillover effects and firm-level green total factor productivity (GTFP) using the Malmquist-Luenberger productivity index approach combined with a threshold regression model. Using firm-level data from annual enterprise surveys in Vietnam’s manufacturing and processing industries from 2013 to 2019, the study found that absorptive capacity had an important mediating role in amplifying the beneficial effects of FDI spillover. The magnitude of horizontal FDI spillover varies with absorptive capacity in medium high technology (MHT) sectors, while negative effects are observed in medium low technology (MLT) and low technology (LT) sectors. Firms with HT, MLT, and LT sectors have positive backward effects on productivity if their absorptive capacity exceeds a particular threshold. Furthermore, our findings point to specific factors that may be crucial in improving absorptive capacity, such as internal research and development, process improvement, and export.https://www.tandfonline.com/doi/10.1080/15140326.2024.2382653FDIabsorptive capacitygreen total factor productivitythreshold regression
spellingShingle Phung Mai Lan
Nguyen Thuy Trang
Nguyen Khac Minh
FDI spillover effect on the green productivity of Vietnam manufacturing firms: the role of absorptive capacity
Journal of Applied Economics
FDI
absorptive capacity
green total factor productivity
threshold regression
title FDI spillover effect on the green productivity of Vietnam manufacturing firms: the role of absorptive capacity
title_full FDI spillover effect on the green productivity of Vietnam manufacturing firms: the role of absorptive capacity
title_fullStr FDI spillover effect on the green productivity of Vietnam manufacturing firms: the role of absorptive capacity
title_full_unstemmed FDI spillover effect on the green productivity of Vietnam manufacturing firms: the role of absorptive capacity
title_short FDI spillover effect on the green productivity of Vietnam manufacturing firms: the role of absorptive capacity
title_sort fdi spillover effect on the green productivity of vietnam manufacturing firms the role of absorptive capacity
topic FDI
absorptive capacity
green total factor productivity
threshold regression
url https://www.tandfonline.com/doi/10.1080/15140326.2024.2382653
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