Export spillovers from FDI companies in manufacturing sector in Vietnam

The paper examines effects of export spillovers by FDI companies on Vietnamese manufacturing companies. Heckman’s sampling model is estimated according to dataset of WB survey of companies. | JED October 2012 |129 Export Spillovers from FDI Companies in Manufacturing Sector in Vietnam NGUYỄN THỊ HỒNG ĐÀO & PHẠM THẾ ANH Masters of Arts, University of Nha Trang hongdaontu@ theanh_dhts@ ABSTRACT The paper examines effects of export spillovers by FDI companies on Vietnamese manufacturing companies. Heckman’s sampling model is estimated according to dataset of WB survey of companies. The results show that characteristics of each company play an important role in two export decisions: (1) whether to take part in export or not, and (2) how large the export share is. FDI companies produce export spillover effects on local companies, and moreover, FDI export spillovers are not identical and they depend on characteristics of local companies. Keywords: FDI, export spillovers 130 | Nguyễn Thị Hồng Đào Export Spillovers from FDI Companies 1. INTRODUCTION In recent years, many researches have analyzed effects of FDI on host countries in various aspects. A much- interested topic id spillover from FDI companies. Spillovers or externalities can be materialized through horizontal or vertical linkages, circulation of labor, competition effects, demonstration and imitation between local and foreign firms (Blomstrom & Kokko, 1998). Most researches analyze effects of spillovers of productivity and technology while export spillovers (effects of FDI companies on export behavior of local firms) attract little attention (Kneller & Pisu, 2007; Sun, 2009). To contribute to research on spillover effects, this paper examines export spillovers from FDI companies to local manufacturing ones. Vietnam is considered as an attractive destination for FDI and an evidence of success in export growth in Southeast Asia, especially in the early 1990s. Nonetheless, researches on this topic are very limited, which comes from lack of data (Anwar & Nguyễn Phi Lân, 2011). Research by Anwar and Nguyễn Phi Lân (2011) has been the only study of export spillovers from .

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