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Does rising import competition harm Vietnam’s local firm employment of the 2000s?

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  • Truc Le Nguyen
  • Huong Vu Van
  • Lam Duc Nguyen
  • Tuyen Quang Tran

Abstract

This study considers for the first time the role of rising import competition on employment in Vietnam. Using a time differenced and instrumental variables approach, our study shows that import competition results in employment contraction. Firms operating in industries that face greater import competition have reduced employment. We also find strong evidence of a negative impact of import competition for small and very small firms, as well as in the period before Vietnam’s World Trade Organization (WTO) accession. Our results also reveal that previous studies at the industry-level can provide biased estimates because of not controlling for the heterogeneity of firm characteristics.

Suggested Citation

  • Truc Le Nguyen & Huong Vu Van & Lam Duc Nguyen & Tuyen Quang Tran, 2017. "Does rising import competition harm Vietnam’s local firm employment of the 2000s?," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 30(1), pages 1882-1895, January.
    • Handle: RePEc:taf:reroxx:v:30:y:2017:i:1:p:1882-1895
    DOI: 10.1080/1331677X.2017.1392883
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