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The exporting and subcontracting decisions of Viet Nam's small- and medium-sized enterprises

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  • Co, Catherine Y.
  • Nguyen, Thu Kim
  • Nguyen, Tung Nhu
  • Tran, Que Nguyet

Abstract

The exporting and subcontracting decisions of a panel of Vietnamese private small- and medium-sized enterprises is investigated. We find that among subcontractors, subcontracting is a supplementary rather than primary activity; the propensity to export increases with managers' or owners' knowledge of customs law; and, there is some evidence that subcontractors are more likely to have made product improvements while exporters are more likely to have adopted new processes or technologies. Our study provides useful insights into SME exporting and subcontracting strategies made more relevant by the expected reductions in trade costs associated with the World Trade Organization's Trade Facilitation Agreement.

Suggested Citation

  • Co, Catherine Y. & Nguyen, Thu Kim & Nguyen, Tung Nhu & Tran, Que Nguyet, 2018. "The exporting and subcontracting decisions of Viet Nam's small- and medium-sized enterprises," International Review of Economics & Finance, Elsevier, vol. 58(C), pages 449-466.
  • Handle: RePEc:eee:reveco:v:58:y:2018:i:c:p:449-466
    DOI: 10.1016/j.iref.2018.05.004
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    References listed on IDEAS

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    More about this item

    Keywords

    Viet Nam; Exports; Subcontractors; SMEs;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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