Abstract
This chapter studies effects of economic shocks on the productive performance of manufacturing firms at Vietnam using the firm level data from 2004 to 2008. The chapter also examines the effects of economic shocks on the productive performance of firms in terms of access to linkages, spillovers, and ownership structures in terms of foreign, private and public ownership. The economic shocks such as global financial crisis tends to have greater impact on domestic firms and SOEs. The findings suggest that the local private enterprises did not receive positive foreign horizontal and backward spillovers from the MNEs, while SOE horizontal linkages also failed to contribute to the improvement in output productivity.
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Notes
- 1.
The figure of the average GDP growth rate is calculated from World Development Indicators, the World Bank.
- 2.
VSIC (2007) is based on International Standard Industrial Classification revision 4 (ISIC Rev.4).
- 3.
GDP deflators are constructed using information available from World Bank.
- 4.
The econometric specification is adapted from Blundell and Bond (2000).
- 5.
Smarzynska and Beata (2002), Pattnayak and Thangavelu (2011) used the foreign equity participation averaged over all firms in the same sector (weighted by each firm’s share in sectoral output), which would be more sensitive to the presence of foreign investment in the industry. However, the data limitation in the dataset only allowed us to capture the horizontal linkage as the foreign firm’s share in sectoral output.
- 6.
αkj is constructed with the use of an input-output table on Vietnam in early 2000s, retrieved from http://stats.oecd.org.
- 7.
The Herfindahl index is a concentration ratio which captures the level of competition in a market or industry by comparing market shares of firms using the relative firm size. A high Herfindahl index indicates the presence of firms with large market shares and hence, a lower level of competition in the industry. Correspondingly, a low Herfindahl index indicates firms each having low market share and thereby, implying a high level of competition.
- 8.
It tests for heteroskedasticity in a linear regression model by checking whether the estimated variance of the residuals from a regression is dependent on the values of the independent variables. If the estimated variance is dependent on the covariates, FE estimates are preferred.
- 9.
Also known as Hansen test, it tests for the validity of instrumental variables used by checking for correlation between the residuals and exogenous variables to affirm the exogeneity of the instrumental variables.
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Thangavelu, S.M., Anbumozhi, V. (2020). Economic Shocks and Uncertainties: How Do Firm Innovativeness Enable Supply Chain and Moderate Interdependence. In: Anbumozhi, V., Kimura, F., Thangavelu, S. (eds) Supply Chain Resilience. Springer, Singapore. https://doi.org/10.1007/978-981-15-2870-5_2
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