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Internationalization and the growth of Vietnamese micro, small, and medium sized enterprises: Evidence from panel quantile regressions

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  • Trinh, Long Quang
  • Doan, Ha Thi Thanh

Abstract

This paper examines the relationship between internationalization and growth for Vietnamese micro, small, and medium sized manufacturing enterprises. Using panel quantile regression analysis, we find that internationalization has a positive effect on the growth of employment, output, and labor productivity. This effect is more pronounced for firms at the higher end of the conditional growth distribution. The evidence further indicates that continuous engagement in internationalization activities is associated with higher growth than intermittent engagement. Firms that both export and sell domestically to foreign invested enterprises enjoy higher growth than those that engage in only one of these forms of internationalization.

Suggested Citation

  • Trinh, Long Quang & Doan, Ha Thi Thanh, 2018. "Internationalization and the growth of Vietnamese micro, small, and medium sized enterprises: Evidence from panel quantile regressions," Journal of Asian Economics, Elsevier, vol. 55(C), pages 71-83.
    • Handle: RePEc:eee:asieco:v:55:y:2018:i:c:p:71-83
    DOI: 10.1016/j.asieco.2018.01.002
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    3. Thanh Doan, Ha Thi, 2019. "Multi-product Firms, Tariff Liberalization, and Product Churning in Vietnamese Manufacturing," ADBI Working Papers 918, Asian Development Bank Institute.
    4. Ștefan Cristian Gherghina & Mihai Alexandru Botezatu & Alexandra Hosszu & Liliana Nicoleta Simionescu, 2020. "Small and Medium-Sized Enterprises (SMEs): The Engine of Economic Growth through Investments and Innovation," Sustainability, MDPI, vol. 12(1), pages 1-22, January.
    5. Bin Ni & Hayato Kato, 2020. "Do vertical spillovers differ by investors’ productivity? Theory and evidence from Vietnam," Review of Development Economics, Wiley Blackwell, vol. 24(3), pages 1046-1072, August.
    6. Anh Tuan Bui & Susan Lambert & Tung Duc Phung & Giao Reynolds, 2021. "The Impact of Business Obstacles on Firm Growth and Job Stability in East Asia and Pacific Nations," Sustainability, MDPI, vol. 13(19), pages 1-19, October.
    7. Galina Besstremyannaya & Sergei Golovan, 2019. "Reconsideration of a simple approach to quantile regression for panel data: a comment on the Canay (2011) fixed effects estimator," Working Papers w0249, Center for Economic and Financial Research (CEFIR).
    8. Nobuaki Yamashita & Doan Thi Thanh Ha, 2022. "Participation in Global Value Chains and Rent Sharing by Small Firms in Viet Nam," Working Papers DP-2021-52, Economic Research Institute for ASEAN and East Asia (ERIA).
    9. Law, Siong Hook & Ng, Chee Hung & Kutan, Ali M. & Law, Zhi Kei, 2021. "Public debt and economic growth in developing countries: Nonlinearity and threshold analysis," Economic Modelling, Elsevier, vol. 98(C), pages 26-40.
    10. Galina Besstremyannaya & Sergei Golovan, 2019. "Reconsideration of a simple approach to quantile regression for panel data: a comment on the Canay (2011) fixed effects estimator," Working Papers w0249, New Economic School (NES).

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