Export-platform FDI and local industries

The development of regional economic integration at the end of the century lead to emergence and development of a particular foreign investment know as "export-platform direct foreign investment". This paper aims to examine impacts of this investment on Vietnamese export-oriented industries (during the period 2000-2006). Firstly, competition effect is negative on production of domestic firms. A rise of 10% of foreign firms" production share in an industry goes with a decrease of 5.9% of domestic firms one. Even so, it does not affect their demographic balance. Consequently, the net effect on local production is negative. The same rise of foreign finns" production share leads to a drop of 12.3% of local one. Then, the presence of MNF generates technological externalities on local production. If their staff steps up by 1%, local production increases by 1.6% ceteris paribus. Furthermore, these extern-alities will be higher in industries where foreign firms are numerous. They also are more important in industries where employees hired by domestic firms are qualified. However, their diffusion will be prevented if the technology used by these foreign firms is advanced. Then, these externalities on local production seem to be brought by technological spillovers on production of domestic firms because any ones are not found on demography of these firms. Lastly, with regard to this demography, MNF only facilitate entry of domestic firms in industries where they are sufficiently numerous or that qualification of worker recruited by domestic firms is sufficiently high.