The determinants of TFP at firm-level in Vietnam

Abstract

This paper investigates the determinants of TFP at firm level using a sample of 370 firms located in 58 cities and provinces of Vietnam. These firms participated in the business census of the General Statistics Office of Vietnam in 2015 and reported R&D activities. The regression result indicates that for firms in Vietnam, factors have a significant and positive effect on TFP include absorptive capacity (proxied by R&D activities), spatial spillovers, export activities and financial constraints. Nevertheless, there is not enough evidence to conclude that political affiliation affects TFP for Vietnamese firms.

Keywords

• tfp at firm-level
• r&d
• marshallian spillovers
• jacobian spillovers
• financial constraints