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Premature deindustrialization risk in Vietnam

Author

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  • Yuta Tsukada

Abstract

Purpose - This study aims to examine the premature deindustrialization risk in Vietnam. Design/methodology/approach - This study uses a manufacturing–income relationship to conduct an empirical estimation. The latecomer index is adopted in the regression model to identify a downward shift of latecomer's relationship. Findings - The empirical analysis indicates that there is a risk of premature deindustrialization in the Northern Midlands and Mountain Areas. The provinces with low trade openness or foreign direct investment may experience risk of premature deindustrialization. Practical implications - This study proposes technology diffusion as a policy direction to prevent premature deindustrialization. Furthermore, the Vietnamese government should improve the business environment in the Northern Midlands and Mountain Areas by promoting and attracting export-oriented foreign direct investment. Originality/value - This study is the first to examine premature deindustrialization in Vietnam based on provincial-level data.

Suggested Citation

  • Yuta Tsukada, 2022. "Premature deindustrialization risk in Vietnam," Journal of Asian Business and Economic Studies, Emerald Group Publishing Limited, vol. 30(3), pages 226-240, July.
    • Handle: RePEc:eme:jabesp:jabes-04-2022-0082
    DOI: 10.1108/JABES-04-2022-0082
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    More about this item

    Keywords

    Premature deindustrialization; Vietnam; Technology diffusion; Latecomer index; O11; O14; O25; O53;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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