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The spillover effect of export on total factor productivity of enterprises

Panel data approach in Vietnam

Bibliographic Data

ID21515909
AuthorsAnh Tuyet Nguyen (0009-0004-8387-2396, Thuyloi University), Vu Hiep Hoang (0000-0002-9416-8351, National Economics University), Phuong Thao Le (0009-0008-7530-8081, Thuyloi University), Thi Thanh Huyen Nguyen (0000-0001-8799-1326, Thuyloi University), Thi Thanh Van Pham
Year2024
Volume51
Issue12
Pages1585-1601
Publication date2024-11-01
Open AccessYes
TypeARTICLE
VenueInternational Journal of Social Economics (JOURNAL)
Journal identifiersISSN: 0306-8293 • E-ISSN: 1758-6712
PublisherEmerald (PUBLISHER)
DOI10.1108/ijse-05-2023-0373
OpenAlexW4395095571
LanguageEN
Citations received1
References cited49

Purpose This study addresses the empirical results of the spillover effect with export as the primary economic activity that enhances local businesses' total factor productivity (TFP). A learning mechanism is expected to be generated and used as the basis for the policy implication. Design/methodology/approach This study adopted the Cobb–Douglas function and multiple estimation approaches, including the generalized method of moments, the Olley–Pakes and the Levinsohn–Petrin estimation techniques. The findings were estimated based on the panel data of a Vietnamese local businesses survey conducted by the General Statistics Office of Vietnam (GSO) from 2010 to 2019. Findings The results showed that the highest TFP belongs to the businesses in the Southeast region, the Mekong Delta region, the mining industry and the foreign-invested enterprises. The lowest impacted TFP are businesses in the Northwest region and agricultural, forestry and fishery sectors. In addition, the estimated results also show that the positive spillover effect on TFP is shown through forward and backward linkage. The negative spillover effect is expressed through the backward and horizontal channels. Research limitations/implications This study offers original empirical evidence on the learning mechanisms via which exports contribute to productivity improvement in a developing Asian economy, so making a valuable contribution to the existing academic literature in this domain. The findings of this research make a valuable contribution to the advancement of understanding on the many ways via which spillover effects manifest such as horizontal, forward, backward and supplied-backward linkage. Practical implications The study's findings indicate that it is advisable for governments to give priority to the development and improvement of forward and supply chain linkages between exporters and local suppliers. This approach is recommended in order to optimize the advantages derived from export spillovers. At the organizational level, it is imperative for enterprises to strengthen their technological and managerial skills in order to efficiently incorporate knowledge spillovers that originate from overseas partners and trade counterparts. Originality/value This study sheds new evidence on the export spillover effect on productivity in emerging economies, with Vietnam as the case study. The paper contributes to the research's originality by adopting novel methodological aspects to estimate local businesses' impact on total factor productivity. Peer review The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-05-2023-0373

Business · Econometrics · Economic growth · Economics · Macroeconomics · Panel data · Productivity · Spillover effect · Total factor productivity · Economic Growth and Productivity · Global trade and economics · International Business and FDI

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Citations per year1
Citation span2025 - 2025 (1)
Highly citedNo

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