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Trade liberalization and export sophistication in Vietnam

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  • Dong Xuan Nguyen

Abstract

This paper empirically examines the impacts of trade liberalization policy on the sophistication level of Vietnam's exports from 2001 to 2010. The export sophistication measure proposed by Hausmann and co-workers is computed by using the disaggregated trade data. By descriptive analysis, this indicator reveals that Vietnam's export structure was similar to that of Indonesia and the Philippines and then became much more similar to Thailand after Vietnam's accession to World Trade Organization (WTO). In addition, this paper econometrically analyzes the effects of trade liberalization on Vietnam's industry-level export sophistication with the additional consideration of its WTO accession in 2007. This paper suggests that tariff reductions have a positive impact on the sophistication level of Vietnam's industry exports. Trade liberalization has a stronger impact on the nonmanufacturing sectors than on manufacturing sectors. However, the results also imply that the WTO membership does not have any additional effects on Vietnam's industry export sophistication.

Suggested Citation

  • Dong Xuan Nguyen, 2016. "Trade liberalization and export sophistication in Vietnam," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 25(8), pages 1071-1089, November.
    • Handle: RePEc:taf:jitecd:v:25:y:2016:i:8:p:1071-1089
    DOI: 10.1080/09638199.2016.1179778
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    Cited by:

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    3. Dang Luu Hai, 2021. "Aid for trade and export sophistication in recipient countries," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 30(4), pages 530-548, May.
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    6. My Duong & Mark J. Holmes & Anna Strutt & Steven Lim, 2019. "Effects of Trade Agreements and Foreign Direct Investment on Trade: Evidence from Vietnam," International Journal of Economics and Financial Issues, Econjournals, vol. 9(3), pages 116-126.
    7. Sevde Arpaci‐Ayhan, 2023. "Foreign aid as a catalyst for improving productive capabilities in recipients," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(5), pages 738-760, July.
    8. Elliott, Robert J.R. & Nguyen-Tien, Viet & Strobl, Eric A., 2021. "Power outages and firm performance: A hydro-IV approach for a single electricity grid," Energy Economics, Elsevier, vol. 103(C).
    9. Ehsan Rasoulinezhad, 2018. "A new evidence from the effects of Russia’s WTO accession on its foreign trade," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 8(1), pages 73-92, April.
    10. Huy Hoang Nguyen & Quang Hoan Truong, 2022. "The Nexus between Inward Foreign Direct Investment and Global Value Chains in Developing Countries: A Case Study of Viet Nam," Working Papers DP-2021-51, Economic Research Institute for ASEAN and East Asia (ERIA).

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