The spillover effect of FDI on

productivity of domestic firms.

Group 8
 Our
members
Phạm Đà m Hương Ly 191115004 4
Phạm An Miên 191115004 7
Lê Đỗ Tuấn Minh 191115004 8
Trần L ê Minh 191115054 8
Trần Trà My 191115072 4
Trần Nhật Mỹ 18144500 56
Nguyễn Trọng Nhân 18144500 59
OUTLIN
E Introduction
Positive effect

Negative effect

Insignificant effect

Conclusion
INTRODUCTION
 BASIC BACKGROUND INFORMATION

Foreign direct investment (FDI) is made when a business takes controlling

ownership in a company, sector, individual, or entity in another country.
In general, FDIs are made in open economies that have a skilled workforce and the
potential for growth.
OUR REPORT
AIMS TO DO:
FIR S T
Examines the effect of FDI
spillovers on domestic firms’
productivity.

T HIR D
Explores and compares the impact
of FDI spillovers on domestic
firms’ productivity in VietNam and
all around the world.
S EC O ND
Investigates the positive, negative,
and whether there are any
insignificant effects of FDI
spillovers on domestic firms’
productivity
Positive spillover effect
 W OR LD
- H o r i zon tal linkag es: high- skille d labor mobil i t y, d em o n st r at i o n
eff ec t , com peti tion that a rise s w i th th e pre sen ce o f F D I
- Ver t ic al linka ges: ba ckw a r d a nd f or w ar d.
 VIET N A M
H o ri zon tal link ag es an d bac kw a rd v ar iab les
Negative spillover effects
 W OR LD
- I mp ac ts on f irm s sur vival
- A bout ver tic al and hor iz on tal
VIET N A M
- H o r iz o ntal
- Ver tic al
- Te ch no logic al ga p
Insignificant spillover effects:
W OR L D
 T he absorp tive cap acity :
FDI p rod uctivity spillov er effects th e
thresho ld s of ab so rptive capacity
 EFFEC T S OF INWA R D FDI:

F D I h a s a shor t-r un adv ers e effe ct on the pr oduct i v i t y p o si t i v e

long- r un r a te effe ct.
T h e r eg re ssion re sults f ac ilita te the pr oduc ti v i t y g r o w t h
 SPIL LOVE R E F FE C T S OF FDI:

E ndoge neity of F D I in fl ow s he ter oge neo us d e p en d i n g

F D I h as no shor t-t er m effe ct on loc al incum ben ts' T F P an d l a b o r
pr oduct ivity g row th
V IE T N AM
T E C HNOL OGY SPI L L OVE RS T HRO UGH VE RTIC AL
AND HOR IZ ONTAL L I NKAGE S

T HE M E ASUR E S OF FDI
FORWARD L IN KAGE S
CONCLUSION
- Lack of analysis on potential negative or positive impacts of FDI on the
production and productivity of domestic firms.
- More analysis of the relationship between the scope of foreign presence
and spillovers.
- More research to explore the relationship between FDI and domestic
investment
Thank you for
listening