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Exports and Firm survival: The first evidence from Vietnam private manufacturing SMEs

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  • Huong Vu

    ()
    (Waikato University)

  • Steven Lim

    ()
    (Waikato University)

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    Abstract

    This study contributes to the literature by investigating for the first time linkages between export behaviour and firm survival in Vietnam. Using an unbalanced panel dataset from 2005-09, our study shows no difference in the survival probability among exporters only, importers only, or two-way traders with non-traders. However, by digging deeper into export status, the results indicate that the probability of firm survival has a positive association with continuous exporters, but is negatively linked with export stoppers. Furthermore, our results also indicate that SMEs pursuing an indirect export mode exhibit a higher probability of survival than SMEs that export directly. These findings are robust to various econometric specifications.

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    Bibliographic Info

    Article provided by AccessEcon in its journal Economics Bulletin.

    Volume (Year): 33 (2013)
    Issue (Month): 2 ()
    Pages: 1259-1268

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    Handle: RePEc:ebl:ecbull:eb-13-00285

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    Related research

    Keywords: Exports; Export mode; Firm Survival; SME; Vietnam;

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    1. Giorgia Giovannetti & Giorgio Ricchiuti & Margherita Velucchi, 2011. "Size, innovation and internationalization: a survival analysis of Italian firms," Applied Economics, Taylor & Francis Journals, vol. 43(12), pages 1511-1520.
    2. Cynthia Benzing & Hung Manh Chu & Gerard Callanan, 2005. "A Regional Comparison Of The Motivation And Problems Of Vietnamese Entrepreneurs," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 10(01), pages 3-27.
    3. Henrik Hansen & John Rand & Finn Tarp, 2009. "Enterprise Growth and Survival in Vietnam: Does Government Support Matter?," Journal of Development Studies, Taylor & Francis Journals, vol. 45(7), pages 1048-1069.
    4. Jolanda Hessels & Siri Terjesen, 2010. "Resource dependency and institutional theory perspectives on direct and indirect export choices," Small Business Economics, Springer, vol. 34(2), pages 203-220, February.
    5. Chandan Sharma & Ritesh Kumar Mishra, 2011. "Does export and productivity growth linkage exist? Evidence from the Indian manufacturing industry," International Review of Applied Economics, Taylor & Francis Journals, vol. 25(6), pages 633-652, November.
    6. Hakkala, Katariina & Kokko , Ari, 2007. "The State And The Private Sector In Vietnam," EIJS Working Paper Series 236, The European Institute of Japanese Studies.
    7. Huong Vu & Steven Lim & Mark Holmes & Tinh Doan, 2012. "Firm Exporting and Employee Benefits: First Evidence from Vietnam Manufacturing SMEs," Working Papers in Economics 12/12, University of Waikato, Department of Economics.
    8. Jozef Konings & Ana Xavier, 2002. "Firm Growth and Survival in a Transition Country: Micro Evidence from Slovenia," LICOS Discussion Papers 11402, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    9. Joachim Wagner, 2011. "Exports, Imports and Firm Survival: First evidence for manufacturing enterprises in Germany," Working Paper Series in Economics 211, University of L√ľneburg, Institute of Economics.
    10. Greenaway, David & Guariglia, Alessandra & Kneller, Richard, 2007. "Financial factors and exporting decisions," Journal of International Economics, Elsevier, vol. 73(2), pages 377-395, November.
    11. Cefis, Elena & Marsili, Orietta, 2012. "Going, going, gone. Exit forms and the innovative capabilities of firms," Research Policy, Elsevier, vol. 41(5), pages 795-807.
    12. Shiferaw, Admasu, 2009. "Survival of Private Sector Manufacturing Establishments in Africa: The Role of Productivity and Ownership," World Development, Elsevier, vol. 37(3), pages 572-584, March.
    13. Sarah Bridges & Alessandra Guariglia, 2008. "Financial Constraints, Global Engagement, And Firm Survival In The United Kingdom: Evidence From Micro Data," Scottish Journal of Political Economy, Scottish Economic Society, vol. 55(4), pages 444-464, 09.
    14. Jovanovic, Boyan, 1982. "Selection and the Evolution of Industry," Econometrica, Econometric Society, vol. 50(3), pages 649-70, May.
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