<abstract xmlns="http://www.w3.org/1999/xhtml"><p> The study examines technical efficiency of Foreign Direct Investment (FDI) firms in the Vietnamese manufacturing sector by applying stochastic production frontier model and making use of cross-sectional data in the period 2009-2013. The average level of technical efficiency of FDI firms is about 60% and it is higher than that of domestic firms (including private firms and state-owned firms). In addition, the study also analyses correlation between technical efficiency of FDI firms and other factors. It finds that there are positive correlations between FDI technical efficiency and net revenue per labour, firm’s age or export activities in 2013. However, the study is unable to find evidence of a relationship between FDI technical efficiency and infrastructure or firm’s investment activities.</p></abstract>

The study examines technical efficiency of Foreign Direct Investment (FDI) firms in the Vietnamese manufacturing sector by applying stochastic production frontier model and making use of cross-sectional data in the period 2009-2013. The average level of technical efficiency of FDI firms is about 60% and it is higher than that of domestic firms (including private firms and state-owned firms). In addition, the study also analyses correlation between technical efficiency of FDI firms and other factors. It finds that there are positive correlations between FDI technical efficiency and net revenue per labour, firm’s age or export activities in 2013. However, the study is unable to find evidence of a relationship between FDI technical efficiency and infrastructure or firm’s investment activities.

Technical efficiency of FDI firms in the Vietnamese manufacturing sector

Student at Faculty of Management and Economics, Tomas Bata University in Zlin

Researcher at Vietnam Institute of Economics, Vietnam Academy of Social Sciences,

Review of Economic Perspectives

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

{"article-title":"Technical efficiency of FDI firms in the Vietnamese manufacturing sector"}

The study examines technical efficiency of Foreign Direct Investment (FDI) firms in the Vietnamese manufacturing sector by applying stochastic production...

Technical efficiency of FDI firms in the Vietnamese manufacturing sector

Published Online: Oct 13, 2016

Page range: 205 - 230

Received: Feb 26, 2016

Accepted: Jul 29, 2016

DOI: https://doi.org/10.1515/revecp-2016-0013

Keywords
FDI, Stochastic production frontier, Technical efficiency, Vietnam

© by Hoang Duong Vu

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Technical efficiency of FDI firms in the Vietnamese manufacturing sector

Published Online: Oct 13, 2016

Page range: 205 - 230

Received: Feb 26, 2016

Accepted: Jul 29, 2016

DOI: https://doi.org/10.1515/revecp-2016-0013

KeywordsFDI, Stochastic production frontier, Technical efficiency, Vietnam

© by Hoang Duong Vu

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
FDI, Stochastic production frontier, Technical efficiency, Vietnam