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FDI and Domestic Firms’ Export Behaviour: Evidence from Vietnam

Authors


  • The authors thank two anonymous referees for their helpful comments. All errors remain the authors’.

Sizhong Sun, School of Business, James Cook University, Townsville, Queensland, Australia. Email: sizhong.sun@jcu.edu.au

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.

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