scholarly journals TECHNICAL EFFICIENCY OF VIETNAMESE MANUFACTURING FIRMS: DO FDI SPILLOVERS MATTER?

2021 ◽  
Vol 22 (2) ◽  
pp. 518-536
Author(s):  
Canh Nguyen ◽  
Minh Le ◽  
Khoa Cai ◽  
Michel Simioni
Keyword(s):  
Technical Efficiency ◽  
Direct Investment ◽  
Negative Impact ◽  
Spillover Effect ◽  
Large Data ◽  
Manufacturing Firms ◽  
Framework Analysis ◽  
Data Set ◽  
Fdi Spillovers ◽  
Economic Regions

This paper investigates the spillover effect (backward, forward, and horizontal linkage) of foreign direct investment (FDI) firms on the technical efficiency of local firms. This research extends the literature by employing meta-frontier framework analysis which is superior to single stochastic analysis because each industry has a different combination of inputs (or dissimilar production technology). Using a large data set (178,700 firm-year observations), this paper finds evidence on the negative impact of the horizontal and forward linkages on the meta-technical inefficiency for the data set as a whole as well as in three economic regions, in private owned firms, and capital and labor-intensive sectors in Vietnam.

Time lag analysis of FDI spillover effect

2019 ◽  
Vol 15 (4) ◽  
pp. 629-650 ◽  
Author(s):  
Yilin Zhang ◽  
Zhenyu Cheng ◽  
Qingsong He
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Human Capital ◽  
Technical Efficiency ◽  
Time Lag ◽  
Spillover Effect ◽  
Content Type ◽  
Fdi Spillovers ◽  
Belt And Road ◽  
The Belt And Road

Purpose For the developing countries involving in the Belt and Road Initiative (BRI) with China as the main source of foreign development investment (FDI) and development as the top priority, it appears to attract more and more attention on how to make the best use of China’s outward foreign development investment. However, the contradictory evidence in the previous studies of FDI spillover effect and the remarkable time-lag feature of spillovers motivate us to analyze the mechanism of FDI spillover effect. The paper aims to discuss this issue. Design/methodology/approach The mechanism of FDI spillovers and the unavoidable lag effect in this process are empirically analyzed. Based on the panel data from the Belt and Road developing countries (BRDCs) and China’s direct investments (CDIs) from 2003 to 2017, the authors establish a panel vector autoregressive model, employing impulse response function and variance decomposition analysis, together with Granger causality test. Findings Results suggest a dynamic interactive causality mechanism. First, CDI promotes the economic growth of BRDCs through technical efficiency, human capital and institutional transition with combined lags of five, nine and eight years. Second, improvements in the technical efficiency and institutional quality promote economic growth by facilitating the human capital with integrated delays of six and eight years. Third, China’s investment directly affects the economic growth of BRDCs, with a time lag of six years. The average time lag is about eight years. Originality/value Based on the analysis on the mechanism and time lag of FDI spillovers, the authors have shown that many previous articles using one-year lagged FDI to examine the spillover effect have systematic biases, which contributes to the research on the FDI spillover mechanism. It provides new views for host countries on how to make more effective use of FDI, especially for BRDCs using CDIs.

scholarly journals The Audit Quality and Audit Delay: Evidence from Indonesia

2020 ◽  
Vol 2 (3) ◽  
pp. 22-32
Author(s):  
T. Husain ◽  
I Gusti Ayu Intan Saputra Rini
Keyword(s):  
Audit Quality ◽  
Negative Impact ◽  
Stock Exchange ◽  
Manufacturing Sector ◽  
Manufacturing Firms ◽  
Average Delay ◽  
Data Set ◽  
Significant Negative Impact ◽  
The Impact ◽  
Insight Into

Purpose: This study specifically aims to identify the impact of Audit Quality on Audit Delay. Audit Quality is measured by the proxy log natural fee audit (LNFE). Methods: This is a causal research with quantitative analysis. This study involves six companies listed in the sub-sectors of Cable under the manufacturing sector in the Indonesia Stock Exchange for the period of 2013-2019. It applied panel data set in a regression model using STATA MP - Parallel Edition Ver14.00 application. Results: The findings show that the Audit quality has a significant negative impact on the Audit Delay with an average delay of 83.62 days. Implications: This study could be extended further by considering all manufacturing firms of IDX which may provide more insight into the audit quality with other proxies.

scholarly journals Credit Redistribution by Listed Manufacturing Firms in Pakistan and the Moderating Role of Financial Depth

2020 ◽  
Vol 12 (4) ◽  
pp. 1-20
Author(s):  
Nisar Ahmad ◽  
Bilal Nafees ◽  
Abdul Rasheed
Keyword(s):  
Trade Credit ◽  
Negative Impact ◽  
Manufacturing Firms ◽  
Future Research ◽  
Data Set ◽  
Listed Firms ◽  
Financial Depth ◽  
The Impact ◽  
Moderating Role

An enhancement in the financial depth (FD) increases the availability of formal credit to firms. Resultantly credit redistribution (CR) by firms is likely to be reduced as they require less trade credit (TC). To provide evidence, how do managers respond to changes in financial depth while making adjustments in their trade credit policy, this paper aims to study the impact of financial depth on credit redistribution by listed manufacturing firms (LMFs). For the firm-level variables, we used a data set of 327 firms listed on PSX for the period 2005 to 2018. Private credit to GDP ratio and market capitalization to GDP ratio are used as proxies for financial depth. Unlike earlier studies, we applied a two-step System GMM estimator to control the endogeneity. The results of the regression analysis display a positive relationship between the use and the supply of trade credit by LMFs. It reveals that LMFs redistribute credit to their customers through trade credit channel. We found a significant and negative impact of FD on the supply of TC by LMFs. Further, we established that financial depth as a moderator has a buffering impact on the credit redistribution by listed firms. The study highlights the moderating role of FD and suggests the financial policymakers of firms to modify their credit policies in response to changes in financial depth. For future research, we suggest the investigation of the effect of financial policy interventions on credit redistribution by small and non-listed firms.

scholarly journals EFFICIENCY, INEFFICIENCY, AND THE MENA FRONTIER

2017 ◽  
Vol 23 (2) ◽  
pp. 489-521
Author(s):  
Dimitris K. Christopoulos ◽  
Peter McAdam
Keyword(s):  
Human Capital ◽  
Middle East ◽  
Natural Resources ◽  
Technical Efficiency ◽  
North Africa ◽  
Economic Efficiency ◽  
Principal Components ◽  
Large Data ◽  
Data Set ◽  
Over Time

We examine technical efficiency in the Middle East and North Africa (MENA). In addition to economic indicators, political and social ones play a role in development and efficiency profiles. The MENA have been characterized by increasing economic efficiency over time but with marked polarization. We analyze and nest many key hypotheses, e.g., the contributions of religion, of natural resources, demographic pressures, human capital, etc. The originality of our contribution is the use of a large data set (including principal components), and extensive robustness checks. It should set a comprehensive benchmark and cross-check for related studies of development and technical efficiency.

scholarly journals PRODUCTIVITY DYNAMICS OF CHINESE MANUFACTURING FIRMS

2019 ◽  
Vol 64 (04) ◽  
pp. 899-919
Author(s):  
QU FENG ◽  
ZHIFENG WANG ◽  
GUIYING LAURA WU
Keyword(s):  
Productivity Growth ◽  
High Speed ◽  
Large Data ◽  
Manufacturing Firms ◽  
Estimation Methods ◽  
Resource Reallocation ◽  
Firm Level ◽  
Data Set ◽  
Per Capita Gdp ◽  
Per Capita

China has experienced high-speed catch-up growth with an average annual rate of over 8% in per capita GDP in the past four decades. Using growth accounting, Zhu (Understanding China’s growth: Past, present, and future. Journal of Economics Perspectives, 26(4), 103–124) finds that the growth of total factor productivity (TFP) accounts for 77% of China’s per capita GDP growth during 1978–2007, and argues that China’s TFP growth is mainly driven by resource reallocation due to market liberalization and institutional reforms. This paper aims to estimate China’s aggregate productivity growth by applying three leading methods of estimating firm-level production function on Chinese manufacturing firms during 1998–2007, and quantify the contribution of resource reallocation to productivity growth. In addition, we also empirically compare the three estimation methods in this large data set.

scholarly journals Joint and Cross-Border Patents as Proxies for International Technology Diffusion

2018 ◽  
Vol 15 (02) ◽  
pp. 1850010 ◽  
Author(s):  
Chia-Lin Chang ◽  
Michael McAleer ◽  
Ju-Ting Tang
Keyword(s):  
Higher Education ◽  
Foreign Direct Investment ◽  
Technology Diffusion ◽  
Direct Investment ◽  
Negative Binomial ◽  
Negative Impact ◽  
Government Expenditure ◽  
Data Set ◽  
Cross Border ◽  
International Technology Diffusion

With the advent of globalization, economic and financial interactions among countries have become widespread. Given technological advancements, the factors of production can no longer be considered to be just labor and capital. In the pursuit of economic growth, every country has sensibly invested in international cooperation, learning, innovation, technology diffusion and knowledge, and outward direct investment. In this paper, we use a panel data set of 40 countries from 1981 to 2008 and a negative binomial model, using a novel set of cross-border patents and joint patents as proxy variables for technology diffusion, in order to investigate such diffusion. The empirical results suggest that, if it is desired to shift from foreign to domestic technology, it is necessary to increase expenditure on R&D for business enterprises and higher education, exports and technology. If the focus is on increasing bilateral technology diffusion, it is necessary to increase expenditure on R&D for higher education and technology. It is also found that outward foreign direct investment has no significant impact on either joint or cross-border patents, whereas inward foreign direct investment has a significant negative impact on cross-border patents but no impact on joint patents. Moreover, government expenditure on higher education has a significant impact on both cross-border and joint patents.

SPILLOVER EFFECTS OF FOREIGN DIRECT INVESTMENT ON DOMESTIC MANUFACTURING FIRMS IN THAILAND

2016 ◽  
Vol 61 (02) ◽  
pp. 1640028 ◽  
Author(s):  
PAITOON WIBOONCHUTIKULA ◽  
CHAYANON PHUCHAROEN ◽  
NUCHIT PRUEKTANAKUL
Keyword(s):  
Foreign Direct Investment ◽  
Technical Efficiency ◽  
Total Factor Productivity ◽  
Direct Investment ◽  
Raw Materials ◽  
Spillover Effects ◽  
Manufacturing Firms ◽  
Factor Productivity ◽  
Domestic Firms ◽  
Industrial Estates

This study investigates technological spillovers of foreign direct investment (FDI) in horizontal, upstream, and downstream industries on domestic manufacturing firms in Thailand, using firm level data from the 2012 industrial census conducted by the National Statistical Office. First, we measure total factor productivity (TFP) and estimate stochastic production frontier to find technical efficiency of firms. Next, we examine impacts of the FDI and other factors on the TFP and technical efficiency of domestic firms. The results provide no evidence on spillover effects of the FDI in horizontal industries on either the TFP or technical efficiency of domestic firms. While the FDI in upstream industries shows negative spillover effects, the FDI in downstream industries reveals positive and significant spillover effects on firms in all industry groups. Firm-specific characteristics such as age, size, availability of imported raw materials, location at industrial estates, and R&D activities all had positive effects on firms’ TFP and technical efficiency in total industries. Although export capability had a positive impact on total factor productivity and technical efficiency of domestic firms in the capital and technology-intensive industries, the effect was insignificant in the labor-intensive ones. The findings imply limited spillover effects of the FDI on domestic firms but highlight favorable effects of the openness policy (affecting availability of imported raw materials and exports), infrastructural investment (available in the industrial estates), and R&D activities. Incentives should be given to the FDI with vertical linkages with domestic input suppliers in order for local firms to gain the most from FDI technology transfers.

Revisiting the Relationship Between Tourism and Crime Based on a Dynamic Spatial Durbin Model

2021 ◽  
pp. 001112872110647
Author(s):  
Jun Zhang ◽  
Guopeng Xiang
Keyword(s):  
Negative Impact ◽  
Interactive Effect ◽  
Spillover Effect ◽  
Tourism Development ◽  
Spillover Effects ◽  
Spatial Durbin Model ◽  
Data Set ◽  
Travel Agents ◽  
The Relationship ◽  
Dynamic Spatial Durbin Model

To determine the extent to which tourism development affects crime rate, this study uses a dynamic spatial Durbin model (DSDM) to examine the spatial effect of tourism on crime. Based on a panel data set of 21 cities in Sichuan Province, China, over the 2008 to 2018 period, and after controlling for the interactive effect, the results reveal that tourism exerts a significantly negative impact on crime. This implies that tourism development can reduce crime. Moreover, tourism has a negative spatial spillover effect; thus, increased tourist arrivals decrease crime in neighboring cities. Per capita GDP, wages, unemployment, population density, hotels, scenic spots, and travel agents generate various direct and spillover effects. Finally, we provide policy suggestions.

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