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Vietnam in the global economy: trade, employment and poverty

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  • Rhys Jenkins

    (School of Development Studies, University of East Anglia, Norwich, UK)

Abstract

Vietnam has undergone a significant change from a relatively closed economy as a result of the reform process initiated in the late 1980s. This has been accompanied by rapid economic growth and substantial poverty reduction during the 1990s. Since one of the main mechanisms through which greater openness is expected to lead to poverty reduction is via the labour market, the paper examines the impact which trade flows have had on employment in Vietnam since the early 1990s. Using a variety of different methods, the paper shows that the growth of exports has had a significant positive effect on employment, while increased import competition had a negative effect both directly and indirectly through rationalization of producers facing foreign competition. Copyright © 2004 John Wiley & Sons, Ltd.

Suggested Citation

  • Rhys Jenkins, 2004. "Vietnam in the global economy: trade, employment and poverty," Journal of International Development, John Wiley & Sons, Ltd., vol. 16(1), pages 13-28.
    • Handle: RePEc:wly:jintdv:v:16:y:2004:i:1:p:13-28
    DOI: 10.1002/jid.1060
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    References listed on IDEAS

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    1. Jitendralal Borkakoti & Chris Milner (ed.), 1997. "International Trade and Labour Markets," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-14577-5.
    2. Milner, Chris & Wright, Peter, 1998. "Modelling Labour Market Adjustment to Trade Liberalisation in an Industrialising Economy," Economic Journal, Royal Economic Society, vol. 108(447), pages 509-528, March.
    3. Yoko Niimi & Puja Vasudeva Dutta & L. Alan Winters, 2015. "Trade Liberalisation and Poverty Dynamics in Vietnam," World Scientific Book Chapters, in: Non-Tariff Barriers, Regionalism and Poverty Essays in Applied International Trade Analysis, chapter 16, pages 333-365, World Scientific Publishing Co. Pte. Ltd..
    4. Hine, Robert C & Wright, Peter W, 1998. "Trade with Low Wage Economies, Employment and Productivity in UK Manufacturing," Economic Journal, Royal Economic Society, vol. 108(450), pages 1500-1510, September.
    5. Khalid Nadvi & John T. Thoburn & Bui Tat Thang & Nguyen Thi Thanh Ha & Nguyen Thi Hoa & Dao Hong Le & Enrique Blanco De Armas, 2004. "Vietnam in the global garment and textile value chain: impacts on firms and workers," Journal of International Development, John Wiley & Sons, Ltd., vol. 16(1), pages 111-123.
    6. Robert C. Hine & Peter Wright, 1997. "Trade and Manufacturing Employment in the United Kingdom," Palgrave Macmillan Books, in: Jitendralal Borkakoti & Chris Milner (ed.), International Trade and Labour Markets, chapter 6, pages 118-139, Palgrave Macmillan.
    7. Yoko Niimi & Puja Vasudeva Dutta & L. Alan Winters, 2015. "Trade Liberalisation and Poverty Dynamics in Vietnam," World Scientific Book Chapters, in: Non-Tariff Barriers, Regionalism and Poverty Essays in Applied International Trade Analysis, chapter 16, pages 333-365, World Scientific Publishing Co. Pte. Ltd..
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    Citations

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    Cited by:

    1. Magrini, Emiliano & Montalbano, Pierluigi & Winters, L. Alan, 2018. "Households’ vulnerability from trade in Vietnam," World Development, Elsevier, vol. 112(C), pages 46-58.
    2. Novella Bottini & Michael Gasiorek, 2009. "Trade and Job Reallocation: Evidence for Morocco," Working Papers 492, Economic Research Forum, revised Jun 2009.
    3. Hoang, Viet-Ngu & Vu, Duc-Cuong, 2021. "On the effects of trade on multidimensional deprivation: Evidence from Vietnam’s rice growing households," Economic Analysis and Policy, Elsevier, vol. 71(C), pages 476-485.
    4. Chia Nan Wang & Anh Phuong Le, 2018. "Application in International Market Selection for the Export of Goods: A Case Study in Vietnam," Sustainability, MDPI, vol. 10(12), pages 1-24, December.
    5. Fukase, Emiko, 2013. "Export Liberalization, Job Creation, and the Skill Premium: Evidence from the US–Vietnam Bilateral Trade Agreement (BTA)," World Development, Elsevier, vol. 41(C), pages 317-337.
    6. Shouxin Bai & Shicheng Zhou & Yuyao Sheng & Xingwei Wang, 2022. "Does Lockdown Reduce Employment in Major Developing Countries? An Assessment Based on Multiregional Input–Output Model and Scenario Analysis," Sustainability, MDPI, vol. 14(12), pages 1-19, June.
    7. Hanan Nazier, 2019. "Estimating Labor Demand Elasticities and Elasticities of Substitution in Egyptian Manufacturing Sector: A Firm-Level Static Analysis," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 62(4), pages 549-575, December.
    8. Rhys Jenkins, 2005. "Globalization, Production and Poverty," WIDER Working Paper Series RP2005-40, World Institute for Development Economic Research (UNU-WIDER).
    9. Rhys Jenkins, 2006. "Contrasting perspectives on globalization and labour in South Africa," Progress in Development Studies, , vol. 6(3), pages 185-200, July.
    10. Tran Nhuan KIEN & Yoon HEO, 2009. "Impacts Of Trade Liberalization On Employment In Vietnam: A System Generalized Method Of Moments Estimation," The Developing Economies, Institute of Developing Economies, vol. 47(1), pages 81-103, March.
    11. Xavier Cirera & Dirk Willenbockel & Rajith W.D. Lakshman, 2014. "Evidence On The Impact Of Tariff Reductions On Employment In Developing Countries: A Systematic Review," Journal of Economic Surveys, Wiley Blackwell, vol. 28(3), pages 449-471, July.
    12. Emiliano Magrini & Pierluigi Montalbano, 2012. "Trade openness and vulnerability to poverty: Vietnam in the long-run (1992-2008)," Working Paper Series 3512, Department of Economics, University of Sussex Business School.
    13. Emiliano Magrini & Pierluigi Montalbano & L. Alan Winters, 2017. "Vulnerability from trade in Vietnam," Working Paper Series 2017, Department of Economics, University of Sussex Business School.
    14. Yoon Heo & Nguyen Khanh Doanh, 2009. "Trade Liberalisation and Poverty Reduction in Vietnam," The World Economy, Wiley Blackwell, vol. 32(6), pages 934-964, June.

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