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Does Export Destination Affect Firm Productivity? Evidence From Small- and Medium-Sized Enterprises in the Vietnamese Manufacturing Sector

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  • Diem Thi Hong Vo
  • Sizhong Sun
  • Chung Thanh Phan

Abstract

This study investigates the impact of export destinations on the productivity of small- and medium-sized enterprises (SMEs) in the Vietnamese manufacturing sector (2007–2013), using fixed effects and instrumental variables to control for possible endogeneity of export in our estimation. Empirical results indicate that export does not significantly improve the productivity of SMEs. In addition, we also consider whether export to developed (and developing) countries differently affects firm productivity in our exercise, and our results suggest no evidence of learning by exporting to developed (and developing) countries. For other factors, firm age and capital intensity are found to have negative impacts on firm productivity, while human capital-related factors, innovation activities, and government assistances show positive and significant productivity effects.

Suggested Citation

  • Diem Thi Hong Vo & Sizhong Sun & Chung Thanh Phan, 2020. "Does Export Destination Affect Firm Productivity? Evidence From Small- and Medium-Sized Enterprises in the Vietnamese Manufacturing Sector," Global Economic Review, Taylor & Francis Journals, vol. 49(1), pages 23-42, January.
    • Handle: RePEc:taf:glecrv:v:49:y:2020:i:1:p:23-42
    DOI: 10.1080/1226508X.2020.1726197
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    Cited by:

    1. Chung Thanh Phan & Thang Tat Vo & Diem Thi Hong Vo, 2023. "Can microcredit reduce vulnerability to poverty? Evidence from rural Vietnam," Review of Development Economics, Wiley Blackwell, vol. 27(1), pages 608-629, February.

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