tailieunhanh - TFP convergence, environmental friendliness and innovation

This paper aims to revisit the Porter hypothesis associated with TFP convergence using a panel data set of manufacturing SMEs in Vietnam covering 2005 - 2015. It contributes to the literature by giving more deeply understanding about TFP convergence of SMEs. Especially, this is the first one examining the link between environmental practices and TFP convergence. We apply the stochastic method developed by Levinsohn and Petrin (2003) to estimate stochastic TFP. The theory of σ- and β-convergence developed by Barro and Sala-i Martin (1995) and Sala-i Martin (1996) is used to establish empirical framework and test its convergence/divergence. We showed an existence a steady-state of productivity between enterprises. However, we found no significant evidence to support the ‘Strong version’ of the Porter hypothesis. Interestingly, cluster proximity has significantly negative impact on productivity growth. | TFP Convergence Environmental friendliness and Innovation Thanh Tam NGUYEN HUU Minh NGUYEN KHAC t Quoc TRAN-NAM Í Abstract This paper aims to revisit the Porter hypothesis associated with TFP convergence using a panel data set of manufacturing SMEs in Vietnam covering 2005 - 2015. It contributes to the literature by giving more deeply understanding about TFP convergence of SMEs. Especially this is the first one examining the link between environmental practices and TFP convergence. We apply the stochastic method developed by Levinsohn and Petrin 2003 to estimate stochastic TFP. The theory of Ơ- and ft-convergence developed by Barro and Sala-i Martin 1995 and Sala-i Martin 1996 is used to establish empirical framework and test its convergence divergence. We showed an existence a steady-state of productivity between enterprises. However we found no significant evidence to support the Strong version of the Porter hypothesis. Interestingly cluster proximity has significantly negative impact on productivity growth. Keywords Ơ- and ft-convergence Porter hypothesis TFP stochastic Environmental regulation Innovation cluster proximity CREAM and Economics Department University of Rouen-France. Email huu-thanh- iThang Long University-Vietnam. Email khacminh@ BETA - University of Strasbourg - France Sai Gon University - Vietnam. Email 1 Introduction Productivity is one of the most important issues of any firms. As Paul Krugman states Productivity is not everything but in the long run it is almost everything. A country s ability to improve its standard of living over time depends almost entirely on its capacity to raise its output per worker .1 Wherein the concept of productivity convergence is mentioned as a long-term process. Generally there are two types of convergences i Basing on the Solow model the -convergence supposes a lower productivity entity country industry region or firm getting faster growth than higher ones