No abstract

This study examined foreign direct investment (FDI)-induced productivity spillovers across 60 Vietnamese provinces from 2000 to 2016. Using a Generalised method of moments (GMM) technique, we find that foreign presence has a positive direct effect on TFP. Further, we found a positive association between industrial linkages and productivity spillovers. All of these findings remained robust to alternative model specifications. After accounting for the roles of human capital in the FDI-TFP nexus, we found absorptive capacity, as measured by human capital, to be a key factor influencing the nature of the foreign presence-productivity spillovers nexus in the host province. Specifically, we observed that better human capital enables provinces to better internalise productivity spillovers from foreign presence. This result lends support to the view that human capital must surpass a critical threshold before the host can realise any productivity spillovers brought about by foreign presence.

No abstract

1In recent years, new and promising developments have made new economic geography (NEG) a popular framework for examining the spatial distribution of economic activity around the world. A major NEG prediction is that wages are higher in regions with a large market and easy access to suppliers of intermediate inputs. Based on this principle, we examine this hypothesis by using provincial data in Vietnam. Since the Doi Moi reform in 1986, the Vietnamese economy has successfully transformed from a centrally planned to a market-based economy. The Vietnamese experience has been seen as a valuable case study for other economies in transition. This paper estimates a structural model of NEG using Vietnamese provinces data for the period 2000 -2012. Using instrumental variables based on the principle of generalised method of moments (GMM), we take account of potential endogeneity problem between regressors. We provide evidence that the industrial linkages and trade costs are statistically signifi cant and quantitatively important in explaining variation in provincial wages. This fi nding is robust to controlling for a wide range of considerations. Moreover, local governments need to strengthen human capital as the fi rst step towards improving average wages. Indeed, a better education system is not only instrumental to raising average earnings per worker, but also crucial for minimizing income inequality in the long run.

This article examines the trade creation and diversion effects of ASEAN-China free trade agreements (ACFTA) for fruit industry by estimating the gravity trade model for the period between 2002 and 2016. The paper uses the pa nel-data with Generalized Least Square (GLS) estimate. The estimated results show that the trade creation has an effect on fruit item. The trade creation effect in ACFTA might come from the wider gap between the general tariff rate and the preferential tariff rate for ASEAN and China fruits, the close distance between commercial partners a nd the conversion of certificate of origin (C/O) of goods to export. Research purpose:Evaluating the impact of the ACFTA on the export of fruit to ACFTA member countries. Contributing to the literature on the impact of the FTA on the trade flows of member countries, in particular the export and import of Vietnamese fruit with China following the accession of the ACFTA trade liberalization agreement. Research motivation:In recent years, importexport balance, which affects national economy, is always considered as one of the most important item by the government. Moreover, facing with Covid-19 Pandemic during these 2 -recent years, the threat of a frozen, import-export industry is getting more attentions. Despite of the serious epidemic, Vietnam's importexport balance has been rising steadily, which in turn encourages us to pay more attention to industry development. Free trade agreements are rapidly increasing in recent years, represented by more and more bilateral and multilateral trade agreements being established. By participating in international and regional trade organizations, Vietnam is also gradually integrating into this trend. It not only opens a new opportunity for the country's economic development and expanding export markets but also helps Vietnam become more involved in the value chain, creating a global production network, transforming the economic structure in a positive way and improving the business environment. New generation FTAs are putting Vietnam ahead of a new trade platform through making strategic changes to enhance economic cooperation and removing previous tariff barriers that hamper the nation-to-nation trade process. FTAs help Vietnam enjoy less-tariff and non-tariff preferential treatment, and also have conditions for more balanced restructuring of import and export markets, avoiding excessive dependence on certain markets. China is Vietnam's large and potential trading partner. Vietnamese companies want to improve their ability to access the Chinese market gradually. In order to take advantages of Free Trade Agreements (FTAs) with China, Vietnam needs to understand the opportunities and benefits as well as the challenges of these FTAs. Therefore, ASEAN-China Free Trade Agreements should be of interest. Research design, approach and method:This article is organized in the following way. Section 1 is an introduction about this research. Section 2 reviews some previous studies. Section 3 describes data and methodologies. Sectio...