THE SPILLOVER EFFECTS OF FOREIGN DIRECT INVESTMENT ON DOMESTIC ENTERPRISES IN SAVANNAKHET PROVINCE, LAOS

Authors

  • Hoang Xuan Binh
  • Khamkeo Manivong
  • Hoang Thi Hoa

Keywords:

FDI, spillover effects, horizontal spillover, vertical spillover, fixed effects model, random effects model.

Abstract

The objective of this study is to examine the spillover effects of foreign direct investment (FDI) on domestic firms in Savannakhet province, Laos. The author uses the fixed effects model (FEM) and the random effect model (REM) with the help of Eviews software and Hausman test to analyze the spillover effects of FDI on domestic firms. in Savannakhet province in the period 2013-2018. Table I-O 2018 is used to structure the relationship between domestic firms and FDI enterprises through the horizontal and vertical spillover effect of FDI on domestic firms. With the data set of sectors from 2013 to 2018, the author estimated the impact of FDI on production and business activities of FDI enterprises. The result of this study is that there is empirical evidence of the effect of the spillover effect of FDI on domestic firms in Savannakhet province.

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Published

2021-10-30

How to Cite

Binh, H. X. ., Manivong, K. ., & Hoa, H. T. . (2021). THE SPILLOVER EFFECTS OF FOREIGN DIRECT INVESTMENT ON DOMESTIC ENTERPRISES IN SAVANNAKHET PROVINCE, LAOS. The Journal of Contemporary Issues in Business and Government, 27(5), 452–469. Retrieved from https://cibgp.com/au/index.php/1323-6903/article/view/2000

Issue

Vol. 27 No. 5 (2021): The journal of contemporary issues in business and government

Section

Articles

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