Foreign Direct Investment and the Survival of Domestic Private Firms in Viet Nam
| Autor: | Tran Toan Thang, Ari Kokko |
|---|---|
| Předmět: |
Social sciences and state - Asia (Asian studies only)
Survival business.industry Geography Planning and Development Viet nam FDI State-owned enterprises jel:F21 International economics Foreign direct investment Regulatory reform International trade Development foreign direct investment FDI state-owned enterprises exit hazard survival Viet Nam Vietnam Crowding out jel:F23 jel:L11 Competition (economics) Local government Viet Nam H53 Business Exit hazard Public finance Social equality |
| Zdroj: | BASE-Bielefeld Academic Search Engine Asian Development Review, Vol 31, Iss 1, Pp 53-91 (2014) |
| DOI: | 10.1162/ADEV_a_00025 |
| Popis: | Foreign direct investment (FDI) may benefit local firms in the host country through various kinds of spillovers, but it may also raise competition and result in the crowding out of domestic firms. Using detailed firm-level data for the period 2001–2008, this paper examines the aggregate effect of FDI on the survival of domestic private firms in Viet Nam. We estimate the impact of both horizontal and vertical FDI and explore how the presence of state-owned enterprises (SOEs) influences the exit hazard for private firms. The results suggest that horizontal and upstream FDI raise the exit hazard significantly, while downstream FDI may reduce the hazard. The presence of SOEs has a direct negative effect on the survival odds of local private firms in the same industry, but there is also an indirect impact on the exit hazard from FDI. Local firms are more vulnerable to foreign entry in sectors with high SOE shares. Looking at the net effects of FDI during the period 2001–2008, we find that results vary between sectors and over time but that the overall impact has been surprising small. The paper also discusses policy conclusions and implications for empirical analyses of spillovers from FDI. © 2014 Asian Development Bank and Asian Development Bank Institute. |
| Databáze: | OpenAIRE |
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