FDI, financial constraints and productivity: firm-level study in Vietnam
Date
2013
Authors
Thangavelu, S.
Findlay, C.
Chongvilaivan, A.
Editors
Thangavelu, S.
Chongvilaivan, A.
Chongvilaivan, A.
Advisors
Journal Title
Journal ISSN
Volume Title
Type:
Book chapter
Citation
Real and Financial Integration in Asia, 2013 / Thangavelu, S., Chongvilaivan, A. (ed./s), Ch.6, pp.99-115
Statement of Responsibility
Shandre M. Thangavelu, Christopher Findlay and Aekapol Chongvilaivan
Conference Name
Abstract
Foreign direct investment (FDI) has been the key engine of growth for developing countries for the past decades. Developing countries have increasingly relied on FDI as a key engine of output, employment and productivity growth. The underlying rationale for attracting FDI in host countries rests with productivity spillovers associated with FDI, whereby positive externalities generated by multinational activities allow indigenous firms to pick up their productivity. Based on the transaction costs theory of FDI (Caves, 1996), multinational enterprises (MNEs) exploit superior knowledge (e.g. technological and informational advantage, managerial expertise and superior organizational structure) transferred from their foreign parents to compensate for the higher operating costs incurred in the host markets. MNEs are therefore expected to demonstrate higher performance in terms of profitability and productivity than domestically owned firms.
School/Discipline
Dissertation Note
Provenance
Description
Access Status
Rights
© 2013 ERIA