Trade-related R&D Spillovers in Vietnamese Manufacturing |
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Authors: | Thang Ngoc Bach |
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Institution: | 1. Asia-Pacific Institute of Management, National Economics University, Hanoi, Vietnamthangbn@neu.edu.vnbnthang@gmail.com |
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Abstract: | ABSTRACTThis study aims to examine how Vietnamese manufacturing could benefit from R&D investment locally and from OECD countries through trade during a period marked with major trade liberalisations. Using the industry-level data during 2000–2009, it finds that the foreign R&D has accounted for the most part of the R&D spillovers in the sector, with a larger proportion earning from the other foreign industries’ R&D. The domestic industries’ own R&D has improved the sector’s total factor productivity, but in a relatively smaller magnitude compared to the foreign sources. In examining the localised effects of R&D spillovers in Vietnamese manufacturing, the results reiterate the important roles of trade-embedded foreign R&D spillovers from Japan, the US, South Korea, and Germany in the sector’s total factor productivity growth. These findings altogether give support to foreign technology diffusion as a major conduit for growth prospects in Vietnamese manufactures. |
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Keywords: | R& D spillovers Vietnamese manufacturing trade liberalisation |
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