Technology Spillover and Determinants of Firm Productivity: An Experiment From a Spatial Regression

Abstract

The aim paper is to study the determinants and spatial spillovers of firm productivity in the manufacturing industry in Vietnam in the period 2010-2019. The study uses a spatial regression model to estimate the spatial dependence of firm-level TFP. The calculated results show that the technology spillover occurs positively among firms in the region, and this effect decreases rapidly with spatial distance. In addition, the results also show that firm productivity benefits from its R&D and export activities, employment density, market competition, and budgetary spending. At the same time, it also indicates that the indirect influence is smaller than the direct effect but shows the same trend. From the above findings, the study proposes essential policies for a domestic firm to access, learn and imitate technologies and apply them to production activities to improve productivity.