Outsourcing, Labor, and TFP : A Vietnamese Manufacturing Perspective
This paper examines the effects of outsourcing, corruption control, labor types, and horizontal and vertical spillovers on the total factor productivity (TFP) of enterprises in emerging economies, with a focus on Vietnam's manufacturing sector. Weighted least squares (WLS) estimation and survey data from 2016 are utilized to analyze the labor force structure and outsourcing practices in these enterprises. The results demonstrate that securing outsourcing contracts and effectively controlling corruption can bolster TFP when implemented. Interestingly, the presence of low-skilled workers without formal training seems advantageous for firms pursuing outsourcing opportunities. Horizontal linkages among foreign direct investment (FDI) enterprises within the same industry also enhance productivity via outsourcing contracts. The study reveals that private enterprises and small- and medium-sized enterprises (SMEs) are more actively engaged in outsourcing compared to state-owned and large enterprises, which leads to higher productivity. Furthermore, low-tech industries, enterprises located in industrial zones, and those in the Red River Delta benefit from Vietnam's emerging economy and ample unskilled labor, making them attractive candidates for outsourcing
Year of publication: |
[2023]
|
---|---|
Authors: | Huynh, Vu Quoc ; Pham Thi Bich, Ngoc ; Pham Dinh, Long |
Publisher: |
[S.l.] : SSRN |
Subject: | Outsourcing | Produktivitätsentwicklung | Productivity change | Industrie | Manufacturing industries | Vietnam | Viet Nam |
Saved in:
freely available
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