The role of environmental practices and innovation in TFP convergence - Evidence from manufacturing SMEs in Vietnam
Thanh Tam Nguyen Huu  1@  
1 : CREAM EA-4702
Université de Rouen
3 avenue Pasteur - 76186 Rouen Cedex -  France

This paper investigates the nexus between environmental practices, innovation and Total Factor Productivity convergence in the case of Vietnamese manufacturing SMEs over the period 2007-2015. While `environmental standard certificate' and environmental treatment' are used as two measures of environmental practices, innovation is divided in increasing-categories: `no innovation', `product or process innovation', and `both innovations'. Environmental standard certificate is found to be neither correlated with Total Factor Productivity, nor with innovation. By contrast, there is a strong correlation between innovation and environmental treatment. On the other hand, innovation and industrial capital intensity are two main factors of firm's Total Factor Productivity convergence.

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