A FIRM-LEVEL ANALYSIS OF TOTAL FACTOR PRODUCTIVITY IN DA NANG CITY

Abstract

The article focuses on analyzing the differences in the growth of total factor productivity (TFP) of enterprises in Da Nang city, according to different groups of characteristics. Besides, the article examines factors affecting TFP growth of enterprises in Da Nang city. By employing the Solow model to calculate TFP growth and OLS regression with the Vietnamese annual enterprise survey data in 2016, the research results show that labor level of qualification and the size of the firms have strong influence on TFP growth of enterprises in Da Nang city. In addition, FDI firms and service-based firms have higher TFP growth. The spillover effects of FDI firms on domestic firms reflect a positive relationship.