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Productivity growth and job reallocation: Evidence from the garment industry in Vietnam

Author

Listed:
  • Thanh Tam NGUYEN-HUU

    (EM Normandie Business School, Métis Lab)

  • Minh NGUYEN-KHAC

    (TIMAS, Thang-Long University, Hanoi, Vietnam)

  • Mai-Lan PHUNG

    (Faculty of Economics and Management, Thuyloi University, Hanoi, Vietnam)

Abstract

The paper investigates the aggregate productivity decomposition in the garment indus-try of Vietnam between 2000 and 2016. According to the Olley-Pack decomposition, there is an improvement in aggregate productivity because garment firms become more productive and there is some job reallocation from less to more productive firms. Mean-while, the dynamic decomposition indicates that aggregate productivity growth is mainly driven by the dynamic entry-exit flow of firms. When firm ownership is considered, the productivity growth of private firms is principally conducted by their dynamic entry-exit flow, and to a lesser extent, by the productivity improvement of survivor firms. Differ-ently, the dynamic entry-exit flow is the sole factor leading to the productivity growth of state-own-enterprises and foreign firms.

Suggested Citation

  • Thanh Tam NGUYEN-HUU & Minh NGUYEN-KHAC & Mai-Lan PHUNG, 2020. "Productivity growth and job reallocation: Evidence from the garment industry in Vietnam," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 52, pages 5-19.
    • Handle: RePEc:tou:journl:v:52:y:2020:p:5-19
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    References listed on IDEAS

    as
    1. Daniel A. Ackerberg & Kevin Caves & Garth Frazer, 2015. "Identification Properties of Recent Production Function Estimators," Econometrica, Econometric Society, vol. 83, pages 2411-2451, November.
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    Keywords

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    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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