The impact of spillover effects on total factor productivity of Vietnamese manufacturing firms
Published: July 31, 2026
Abstract
This study clarifies the Total Factor Productivity (TFP) spillover effects from external factors in the case of manufacturing enterprises in Vietnam. The study uses the annual enterprise survey of Vietnam in the period 2011 - 2015, the TFP calculation method (Olley and Pakes,1996), and the regression models with Fixed Effect and Random Effect. The study’s resuls show that the technology diffusion from foreign-invested enterprises, either in the same province or in different province, has positive impact on the TFP of domestic firms. The vertical linkage effect among firms in different industries plays the role of increasing the TFP while the horizontal linkage among firms in the same industry and exporting do not reveal the significant result.
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