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This study investigates the productivity gap between foreign-owned and domestic Arms in Viet Nam. Using quantile regression estimation for the period of 2011-2020, the study first examines the impact of Arms' specifics and of provincial governance quality on firms' total factor productivity at different points of the productivity distribution. The results show that labour productivity, market share and return on assets appear to significantly affect firm productivity regardless of firm groups or quantiles. To understand the productivity gap between foreign and domestic firms, the study uses the quantile decomposition approach to differentiate the factors that contribute to the gap at different quantiles. Our findings reveal that across quantiles most of the productivity gap is explained by firms' specifics, especially labour productivity. To address the productivity gap between foreign-owned and domestic firms in Viet Nam, policymakers should focus on enhancing domestic firms' access to technology, firms' experience and human capital development, as firm-specific factors appear to be major contributors to the productivity differential. In addition, improving provincial governance quality and creating an enabling environment for both foreign-owned and domestic firms can further stimulate productivity growth and foster healthy competition in the manufacturing sector. Keywords : domestic firms, foreign direct investment, quantile decomposition, total factor productivity gap, Viet Nam JEL classification codes : F63, L25, L60, O53, 1. Introduction Foreign direct investment (FDI) has played a pivotal and transformative role in shaping the economic landscape of Viet Nam throughout the past few decades. Viet Nam is known [...]

Global value chains (GVCs) generate significant effects on participating firms. But can GVCs affect other companies in the host economies? We propose a conceptual framework for GVC spillovers and test it using data for Russian manufacturing firms in 2009-2015. Using a panel estimation technique with random and fixed effects, we find that firms in industries that are intensively integrated into GVCs, on average, have higher total factor productivity (TFP), controlling for firm heterogeneity, industry and region fixed effects. TFP gains in GVCs are unequally distributed and depend on (i) the industry's position in the GVC, (ii) the industry's technological intensity and (iii) the firm's TFP level. We relate the findings to the evidence of the 'optimal' technological gap that maximizes productivity spillovers for national companies. The results are highly relevant for policymakers as they prove that trade policy and foreign direct investment attraction policy should not go hand in hand but should be incorporated into GVC-oriented policy to encourage the full range of TFP improvements in local (non-GVC-included) firms. To fully benefit from GVC-oriented policy, State policy should encourage the development of inter-firm links. In addition, our results support the importance of evolutionary structural changes in economic upgrading in GVCs and the strength of the role of policies oriented towards medium-technology industries as drivers of technological development. Keywords: GVC spillovers, forward and backward linkages, TFP, Russian manufacturing JEL classification codes: C67, F10, F23, O12,, 1. Introduction Contemporary production processes are usually divided by different stages and locations and require coordination through arm's-length transactions or within a vertically integrated firm (Baldwin and Yan, 2017). This [...]

The impacts of structural and behavioral determinants of Italian industrial districts' companies on the internationalization of their production are examined. Results show that leadership effects and Porterian effects positively affect the likelihood of internationalization through foreign direct investments. The impacts of previous export relationships and innovative capacity on internationalization are also studied.

A study was conducted in which informants from firms engaged in large-scale global projects reported unforeseen costs after failing to comprehend cognitive-cultural, normative, and/or regulative institutions in an unfamiliar host societal context. Findings articulate the kinds of institutional transaction costs that an entrant incurs in each of the phases and conditions that lead to the growth of these costs.

Using time series data for Taiwan during 1964-2003, this paper examines how economic growth, openness, and the role of government contribute to poverty alleviation. Sustained economic growth is found to be the major driving force for poverty reduction in Taiwan, and openness to foreign trade helps the poor through a direct distribution effect as well as indirect growth effect in both the long term and short term. While inward FDI has no significant impact on the mean income of the poor, outward FDI from Taiwan in the past two decades seems to have had an adverse effect on the poorest 20% of the population. Key words--trade, foreign direct investment, growth, poverty, Asia, Taiwan

The inter-relations between foreign direct investments and exemption of taxes in social welfare scenarios is analyzed.

The macroeconomic policies that Kazakhstan adopted in recent times are discussed. By virtue of these policies, the country was able to attract foreign investment. However, these investments were not in the sector that would help the country's economic development. Kazakhstan is one of the countries that are formed from the disintegration of erstwhile Soviet Union. Its economy is undergoing transition from planned economy to market economy.

Studies of trade policy welfare effects often ignore the potential for tariff-jumping foreign direct investment (FDI) to mitigate positive gains to domestic producers. Using event study methodology we find that affirmative U.S. antidumping decisions are associated with average abnormal gains of over 3% to a firm in the petitioning industry in the absence of tariff-jumping FDI, but much smaller and statistically insignificant abnormal gains if there is tariff-jumping FDI. We also find evidence that tariff jumping in the form of new plants or plant expansion has significantly larger negative effects on U.S. domestic firms' profits than other types of tariff-jumping FDI. JEL Classification: F13, F23, L11 Investissements directs de l'etranger pour eviter les barrieres tarifaires et profits des entreprises nationales. Les etudes des effets de bien-etre des politiques commerciales ignorent souvent la possibilite que l'investissement direct de l'etranger (IDE), en permettant d'eviter les barrieres tarifaires en viguenr, en arrive a attenuer les gains de la politique commerciale protectionniste pour les producteurs nationanx. En utilisant une methodologie axee sur l'etude d'evenements, on decouvre que les decisions d'imposer des mesures anti-dumping aux Etats-Unis sont associees a des gains moyens anormaux de plus de 3% pour l'industrie qui en fait la demande, en l'absence d'investissement direct de l'&ranger fait pour eviter les barrieres tarifaires. Ces gains sont beaucoup plus petits et statistiquement insignifiants quand cette manoeuvre d'evitement est adoptee. Il appert que cette strategie pour eviter les barrieres tarifaires a des effets negatifs plus importants, et ce de maniere significative, sur les profits des entreprises americaines

A study is conducted to find out the conditions that can effectively utilize foreign direct investment (FDI) to govern the economic growth in developing countries.

The use of foreign direct investment as a channel of international spillovers is by now fairly established in the empirical literature on innovation and growth. It is often argued that subsidiaries of foreign multinational enterprises are a mechanism through which technological know-how flows across borders. For foreign subsidiaries to be channels of international spillovers, these subsidiaries need to source know-how internationally and transfer their know-how to the local economy. Using direct firm level evidence from the Belgian Community Innovation Survey on the occurrence of technology transfers, we find that foreign subsidiaries are indeed more likely to acquire technology internationally. But after controlling for the superior access to the international technology market that foreign subsidiaries enjoy, we find that these firms are not more likely to transfer technology to the local economy as compared to local firms. JEL classification: D21; L16; F23; 023 Keywords: Technology transfer channels; Multinationals; Access to international know-how; Local transfers of know-how

This article argues that the development of the financial system of the recipient country is an important precondition for FDI to have a positive impact on economic growth. A more developed financial system positively contributes to the process of technological diffusion associated with FDI. The article empirically investigates the role the development of the financial system plays in enhancing the positive relationship between FDI and economic growth. The empirical investigation presented in the article strongly suggests that this is the case. Of the 67 countries in data set, 37 have a sufficiently developed financial system in order to let FDI contribute positively to economic growth. Most of these countries are in Latin America and Asia., I. INTRODUCTION The contribution of foreign direct investment (FDI) to economic growth has been debated quite extensively in the literature. This debate has focused on the channels through which FDI [...]

Foreign direct investment in Mexico has increased due to the North American Free Trade Agreement, liberalization of economic policy, and political reform. Foreign direct investment and the North American Free Trade Agreement are found to have contributed to economic growth in Mexico.