Do vertical spillovers differ by investors' productivity? Theory and evidence from Vietnam

Ni, Bin; Kato, Hayato

Do vertical spillovers differ by investors' productivity? Theory and evidence from Vietnam

Ni, Bin; Kato, Hayato

Discussion Papers In Economics And Business, 2020, 20-05, 1-36

Number of Access:438（2025-09-04 08:32 Counts）

Identifier to cite or link to this item: https://hdl.handle.net/11094/75305

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Title	Do vertical spillovers differ by investors' productivity? Theory and evidence from Vietnam
Creator	NRID 1000060779677 1000060779677 CreatorName Ni, Bin
Creator	NRID 1000030837703 1000030837703 ORCID 0000-0002-2063-8453 0000-0002-2063-8453 researchmap permalink 30837703 30837703 Scopus Author ID 57200115385 57200115385 CreatorName Kato, Hayato
Subject	FDI spillovers
	Heterogeneous productivity
	Firm-level data
	Endogenous structural break
	Vertical Cournot model
Abstract	Developing countries are eager to host foreign direct investment to receive positive technology spillovers to their local firms. However, what types of foreign firms are desirable for the host country to achieve spillovers best? We address this question using firm-level panel data from Vietnam to investigate whether foreign Asian investors in downstream sectors with different productivity affects the productivity of local Viet-namese firms in upstream sectors differently. Using endogenous structural breaks, we divide Asian investors into low-,middle-,and high-productivity groups. The results suggest that the presence of the middle group has the strongest positive spillover ef-fect. The differential spillover effects can be explained by a simple model with vertical linkages and productivity-enhancing investment by local suppliers. The theoretical mechanism is also empirically confirmed.
Publisher	Graduate School of Economics, Osaka University
Source Title	Discussion Papers In Economics And Business
Volume (Issue)	20-05
Page	1-36
Date of Issued	2020-02
Language	English
Handle URL	https://hdl.handle.net/11094/75305
NCID	AA1160366X
Relation.isReferencedBy	URI http://www2.econ.osaka-u.ac.jp/econ_society/dp/2005.pdf
Access Rights	metadata only access
Category	ディスカッション／ワーキング・ペーパー DP/WP
Category	Discussion Papers In Economics And Business

Resource Type	technical report
Local Type	DP/WP
DCMI Type	Text
DCTERMS.bibliographicCitation	Discussion Papers In Economics And Business. 2020, 20-05, p. 1-36
DC.title	Do vertical spillovers differ by investors' productivity? Theory and evidence from Vietnam
DC.creator	Ni, Bin
DC.creator	Kato, Hayato
DC.publisher	Graduate School of Economics, Osaka University
DC.language' scheme='DCTERMS.RFC1766	English
DC.type' scheme='DCTERMS.DCMIType	Text
DCTERMS.issued' scheme='DCTERMS.W3CDTF	2020-02
DC.relation' scheme='DCTERMS.URI	http://www2.econ.osaka-u.ac.jp/econ_society/dp/2005.pdf
DC.subject	FDI spillovers
	Heterogeneous productivity
	Firm-level data
	Endogenous structural break
	Vertical Cournot model
DCTERMS.abstract	Developing countries are eager to host foreign direct investment to receive positive technology spillovers to their local firms. However, what types of foreign firms are desirable for the host country to achieve spillovers best? We address this question using firm-level panel data from Vietnam to investigate whether foreign Asian investors in downstream sectors with different productivity affects the productivity of local Viet-namese firms in upstream sectors differently. Using endogenous structural breaks, we divide Asian investors into low-,middle-,and high-productivity groups. The results suggest that the presence of the middle group has the strongest positive spillover ef-fect. The differential spillover effects can be explained by a simple model with vertical linkages and productivity-enhancing investment by local suppliers. The theoretical mechanism is also empirically confirmed.
DC.format	75305
citation_title	Do vertical spillovers differ by investors' productivity? Theory and evidence from Vietnam
citation_author	Ni, Bin
citation_author	Kato, Hayato
citation_publisher	Graduate School of Economics, Osaka University
citation_language	English
citation_date	2020-02
citation_journal_title	Discussion Papers In Economics And Business
citation_volume	20-05
citation_firstpage	1
citation_lastpage	36
citation_public_url	https://hdl.handle.net/11094/75305
citation_abstract_html_url	http://www2.econ.osaka-u.ac.jp/econ_society/dp/2005.pdf

Do vertical spillovers differ by investors' productivity? Theory and evidence from Vietnam

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