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Does WTO Accession Help Domestic Reform? The Political Economy of SOE Reform Backsliding in Vietnam

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  • VU-THANH, TU-ANH

Abstract

Conventional wisdom holds that international trade agreements can serve as a source of external pressure and credible commitment to overcome opposition and to lock in domestic economic reforms. This belief, however, underestimates the ability of politicians not only to circumvent these pressures, but to leverage international trade agreements to advance their own policy preferences – preferences that may be highly anti-reformist. Thus, trade agreements do not necessarily induce reforms and, in certain circumstances, they can even be counterproductive. Through an analysis of aggregate data and 40 interviews with senior politicians, government officials, and state-owned enterprise managers in Vietnam, this paper illustrates these insights by analyzing the political economy of SOE reform backsliding on the eve of Vietnam's accession to the WTO.

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  • Vu-Thanh, Tu-Anh, 2017. "Does WTO Accession Help Domestic Reform? The Political Economy of SOE Reform Backsliding in Vietnam," World Trade Review, Cambridge University Press, vol. 16(1), pages 85-109, January.
    • Handle: RePEc:cup:wotrrv:v:16:y:2017:i:01:p:85-109_00
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    Cited by:

    1. FUJITA Mai, 2017. "Vietnamese State-owned Enterprises under International Economic Integration," Discussion papers 17121, Research Institute of Economy, Trade and Industry (RIETI).
    2. Mai, Nhat Chi, 2020. "Related Party Transactions, State Ownership, the Cost of Corporate Debt, and Corporate Tax Avoidance: Evidence from Vietnam," OSF Preprints y5qj3, Center for Open Science.
    3. Minor, Peter & Walmsley, Terrie & Strutt, Anna, 2018. "State-owned enterprise reform in Vietnam: A dynamic CGE analysis," Journal of Asian Economics, Elsevier, vol. 55(C), pages 42-57.

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