(LUẬN văn THẠC sĩ) innovation and productivity in small and medium enterprises, a case study of vietnam

UNIVERSITY OF ECONOMICS INSTITUTE OF SOCIAL STUDIES HO CHI MINH CITY THE HAGUE VIETNAM THE NETHERLANDS VIETNAM – THE NETHERLANDS PROGRAMME FOR M.A IN DEVELOPMENT ECONOMICS INNOVATION AND PRODUCTIVITY IN SMALL AND MEDIUM ENTERPRISES: A CASE STUDY OF VIETNAM By PHAM DO TUONG VY MASTER OF ART IN DEVELOPMENT ECONOMICS HCMC, NOVEMBER 2016 TIEU LUAN MOI download : skknchat@gmail.com University of Economics International Institute of Social Study Ho Chi Minh City The Hague Vietnam The Netherlands VIETNAM – THE NETHERLANDS PROGRAMME FOR M.A IN DEVELOPMENT ECONOMICS INNOVATION AND PRODUCTIVITY IN SMALL AND MEDIUM ENTERPRISES: A CASE STUDY OF VIETNAM by Pham Do Tuong Vy A Thesis Submitted in Partial Fulfilment of the Requirements for the Degree of Master of Art in Development Economics Academic Supervisor: Dr Vo Hong Duc HCMC, NOVEMBER 2016 TIEU LUAN MOI download : skknchat@gmail.com DECLARATION I hereby declare that this thesis entitled “Innovation and Productivity in Small and Medium sized Enterprises: A case study of Vietnam”, which is written and submitted by me in accordance with the requirement for the degree of Master of Art in Development Economics to the Vietnam – The Netherlands Programme This is my original work and all sources of knowledge carried in this thesis have been duly acknowledged HCMC, November 2016 PHẠM ĐỖ TƯỜNG VY TIEU LUAN MOI download : skknchat@gmail.com ACKNOWLEDGEMENT I would like to take this opportunity to express my deepest gratitude for the help, support and encouragement of the following people, who have contributed to the completion of this thesis in their very own ways Above all, I would like to express my immeasurable appreciation to my supervisor – Dr Võ Hồng Đức for his precious time, support and advices to make this thesis completed Furthermore, I would like to send my great thanks to all the lecturers and staffs at the Vietnam – The Netherlands Programme for their knowledge and supports during my time joining in the program In specific, I am extremely grateful to Dr Phạm Khánh Nam and Dr Trương Đăng Thụy for their valuable guidance and support in the courses and thesis writing process To all of my friends in Class 21 and my colleagues at TPF, I could never thankful enough for your encouragement and support until the very end of this thesis Last but not least, my deepest thanks and love to my parents, who have always been beside me Without their unconditional love, none of this would have been possible TIEU LUAN MOI download : skknchat@gmail.com ABBREVIATION 2SLS Two Stage Least Squares CDM Crépon, Duguet and Mairesse FE Fixed Effect GMM Generalized Method of Moments GSO General Statistic Office IV Instrument Variables LP Levinsohn and Petrin OLS Ordinary Least Squares OP Olley and Parker R&D Research and Development SMEs Small and Medium-sized Enterprises TFP Total Factor Productivity TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam (LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam ABSTRACT The majority of enterprises in Vietnam is categorized as small and medium sized (SMEs) firms which play an important role to the sustainable growth of the Vietnamese economy As such, improving the productivity of the SMEs is essentially needed and this request becomes a crucial mission for the governments It is generally accepted that innovation and technology improvement are key drivers of productivity (Bartelsman & Doms, 2000) However, they have not been well-acknowledged by the SMEs in Vietnam even though their huge contribution to firm’s productivity is unarguable This study aims to examine the relationship between innovation and productivity in the Small and Medium-sized Enterprises (SMEs) in Vietnam To establish and quantify this relationship, this study employs the two-stage process: (i) the estimation of total factor productivity for each firm; and (ii) a determination of an innovation – productivity relationship In the first stage, total factor productivity is estimated based on production function using the input and output approach However, firms might adjust their input level according to expected productivity shock As such, a potential endogeneity caused by possible relationship between input decision and productivity shocks (unobserved productivity shock) might exist To deal with this problem of endogeneity, an approach developed by Levinsohn and Petrin is applied to estimate firm’s total productivity In the second stage, the systemGMM approach is adopted to examine the relationship between innovation and productivity An unbalanced panel dataset from five Small and Medium-sized Enterprises surveys from 2005 to 2013 is used in this study Findings from this study indicate that, in the context of Vietnam, when innovation is measured as innovation expenditure intensity and high-quality labor share in total firm’s labor force, innovation activities provide positive and significant impact on firm’s productivity In addition, past value of firm’s productivity also has significant relationship with its current level This finding implies that higher (lower) level of current productivity TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam (LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam could lead to higher (lower) level of productivity in the future The study also provides empirical evidence to confirm that larger firms might perform better than the relatively smaller firms In contrast, capital structure provides negative impact on firm’s productivity However, this study fails to provide any evidence to support the view that longevity of firm does provide significant impact on productivity of firms Key words: Vietnam SMEs; Total factor productivity; Productivity Shock; Innovation, GMM TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam (LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam APPENDIX 2: Empirical studies on relationship between innovation and firm’s performance Reference Data Output measurement Innovation measurement Methodology Conclusion Siedschlag, Zhang and Cahill (2010) Panel data of 723 firms from Community Innovation Survey of Ireland in period of 2004-2008 Labor productivity -CDM model contains three stages: (1) firm's decision to invest in innovation; (2) determine innovation output using innovation inputs and (3) innovation output and other production inputs in the relationship with final output production (1) Foreign owned firms and domestic firms involved in export activities are more likely to invest in innovation than firms with domestic activities only (2) Foreign owned firms and domestic firms involved in export activities are more likely to have innovation output Innovation expenditure have no significant effect on innovation output (3) Innovation outputs have positive relationship with labor productivity Belderbos, Carree and Lokshin (2004) Labor productivity growth/Innovati ve sales (products that are new to the market) productivity growth IV regression between output variable and innovation variables, control for firm size, 2-digit industry dummies, ownership status, demand-pull and cost-push Productivity in the previous period also is included Different types of R&D collaboration and innovation intensity significantly and positively affect productivity growth (but innovation intensity on innovative sales share) Crespi Pianta (2009) Panel data from Community Innovation Survey in Netherlands in 1996 and 1998 for 2056 manufacturing firms 32 industries (including manufacturing Innovation input: innovation expenditure (rather than R&D expenditure) per employee - Innovation output: Three types of innovation dummies: product, process and organizational innovation; interactions; innovation sales share - Innovation expenditure per sales - Dummy variables for four types of R&D cooperation: competitors, suppliers, customers, universities or other research institutions - Innovation expenditure per employee Diversify the impact of innovation on productivity growth through three separated models: general Product and process innovations; effort to build technological competitive advantages, and Labor productivity growth 65 TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam (LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam and service sectors) in Europe countries from 1996 to 2001 Parisi, Schiantarelli and Sembenelli (2006) 941 manufacturing firms in Italy from two surveys in 1995 and 1998 - Gross output growth - TFP growth (TFP is determined using Levinsohn and Petrin (2003) approach) Santos, Basso, Kimura and Kayo (2014) Data of Brazilian firms in 2000, 2003, 2005 in which: ROA ROS ROE Technological competitiveness: percentage of firms have patents; percentage of firms targeting on improving product quality - Cost competitiveness: spending on acquisition of new machinery per employee; percentage of firms targeting on flexible the production process -Process and product innovation dummies - R&D expenditure as percentage of output - Human capital - Ratio of training expenditure to sales - Ratio of internal R&D expenditure to sales model (reflect product and process innovation); technological competitiveness model and cost competitiveness model cost advantages significantly contribute to growth in productivity Cobb-Douglas production function to estimate the impact of innovation activities on output growth, instrumented by lag of ln(output/labor), ln(material/labor), ln(capital/labor), R&D intensity, size) - Tornquist index of TFP is regressed against innovation variables, instrumented by the same set of variables above - Descriptive and quantitative approach: factor analysis - Structural equation modelling - Positive impact of process and product innovation on productivity In details, the impact of process innovation is bigger than product innovation These results are robust in both approaches: TFP growth and CobbDouglas production function estimation - R&D intensity does not have significant impact on productivity Innovation efforts from innovative investment not significant explain firm's performance Causality relationship between innovation and performance 66 TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam (LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam Rosenbusch, Brinckmann and Bausch (2011) Lokshin, Belderbos and Carree (2008) - Innovation information from PINTEC of Brazilian Institute of Geography and Statistics Financial information from Serasa and Gazeta Mercantil 42 empirical studies on 21,270 SMEs 304 Netherlands manufacturing firms from 1996 to 2001 - Ratio of acquisition of machinery expenditure to sales - Ratio of external R&D expenditure to sales - Ration of introduction of technological innovation expenditure to sales Categorized into three types: accounting returns - growth - stock market performance - Innovation orientation Innovation input measurements: internal (R&D expenditure) and external (R&D cooperation) Innovation output measurements (innovation sales, patents) Meta-analyses on 42 empirical studies of 21,270 SMEs Labor productivity: net value added per employee Internal R&D expenditure External R&D expenditure (contracted R&D) GMM estimation for the dynamic panel equation from augmented Cobb-Douglas production function Innovation variables included in the model are: internal - Positive effect of innovation on firm's performance when innovation is measured in three types, but the effect of innovation orientation is larger than innovation outcomes - Effect of innovation on firm's performance in young firms is larger than in more established firms - Internal innovation activities have significant impact on performance while innovative collaboration with external involves have no significant impact on performance - Cultural environment also have impact on the innovation-performance relationship - Internal and external R&D are complement in the relationship with productivity with decreasing returns to scales effect - Internal R&D have positive impact on firm's productivity, this relationship is robust with 67 TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam (LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam R&D expenditure, external R&D expenditure, quadratic forms and interaction form different dynamic techniques 68 TIEU LUAN MOI download : skknchat@gmail.com panel econometric (LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam (LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam APPENDIX 3: Durbin – Wu Hausman test for endogeneity IV (2SLS) estimation Estimates efficient for homoskedasticity only Statistics consistent for homoskedasticity only Number of obs = F( 6, 1942) = 1949 50.27 Prob > F = 0.0000 Total (centered) SS = 386439909.4 Centered R2 = -0.9527 Total (uncentered) SS = 655444519.7 Uncentered R2 = -0.1513 Residual SS = 754587147.2 Root MSE = 622.2 -TFP | Coef Std Err z P>|z| [95% Conf Interval] -+ -invexpintensity | -1657.575 803.1596 -2.06 0.039 -3231.739 -83.4112 dummy | 968.7459 471.593 2.05 0.040 44.44065 1893.051 706479 0460183 15.35 0.000 6162849 7966732 lntotalassets | -21.87988 28.06836 -0.78 0.436 -76.89286 33.13309 capitalstructure | -372.9817 203.9315 -1.83 0.067 -772.6802 26.71677 firmage | -3.555249 2.472536 -1.44 0.150 -8.40133 1.290831 _cons | 598.6118 444.9574 1.35 0.179 -273.4886 1470.712 | TFP | L1 | | -Underidentification test (Anderson canon corr LM statistic): Chi-sq(1) P-val = 7.005 0.0081 -Weak identification test (Cragg-Donald Wald F statistic): 7.005 Stock-Yogo weak ID test critical values: 10% maximal IV size 16.38 15% maximal IV size 8.96 20% maximal IV size 6.66 25% maximal IV size 5.53 Source: Stock-Yogo (2005) Reproduced by permission 69 TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam (LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam -Sargan statistic (overidentification test of all instruments): 0.000 (equation exactly identified) -endog- option: Endogeneity test of endogenous regressors: 12.577 Chi-sq(1) P-val = Regressors tested: 0.0004 invexpintensity -Instrumented: invexpintensity Included instruments: dummy L.TFP lntotalassets capitalstructure firmage Excluded instruments: L.invexpintensity 70 TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam (LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam APPENDIX 4: Durbin – Wu Hausman test for endogeneity IV (2SLS) estimation Estimates efficient for homoskedasticity only Statistics consistent for homoskedasticity only Number of obs = F( 7, 2899) = 2907 155.87 Prob > F = 0.0000 Total (centered) SS = 467122455.9 Centered R2 = 0.2650 Total (uncentered) SS = 799333085.9 Uncentered R2 = 0.5705 Residual SS = 343351960.1 Root MSE = 343.7 -TFP | Coef Std Err z P>|z| [95% Conf Interval] -+ -highqualitylabor | -395.2885 285.819 -1.38 0.167 -955.4834 164.9064 dummy | -17.08177 18.7009 -0.91 0.361 -53.73487 19.57132 6299597 0219493 28.70 0.000 5869398 6729796 invexpintensity | 27.09339 22.10942 1.23 0.220 -16.24029 70.42706 lntotalassets | 42.31543 6.82258 6.20 0.000 28.94342 55.68744 capitalstructure | -35.67232 26.2863 -1.36 0.175 -87.19252 15.84788 firmage | -1.741898 9786339 -1.78 0.075 -3.659985 176189 _cons | -356.4369 84.88587 -4.20 0.000 -522.8101 -190.0636 | TFP | L1 | | -Underidentification test (Anderson canon corr LM statistic): Chi-sq(1) P-val = 313.770 0.0000 -Weak identification test (Cragg-Donald Wald F statistic): 350.767 Stock-Yogo weak ID test critical values: 10% maximal IV size 16.38 15% maximal IV size 8.96 20% maximal IV size 6.66 25% maximal IV size 5.53 71 TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam (LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam(LUAN.van.THAC.si).innovation.and.productivity.in.small.and.medium.enterprises a.case.study.of.vietnam