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Firm-level Evidence on Productivity Differentials and Turnover in Vietnamese Manufacturing

Author

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  • Doan Thi Thanh Ha

    (International Graduate School of Social Sciences, Yokohama National University and Faculty of International Economics and Business, Foreign Trade University)

  • Kozo KIYOTA

    (Keio Economic Observatory, Keio University)

Abstract

This paper examines the relationship between productivity differentials and firm turnover in Vietnamese manufacturing. We utilize firm-level data between 2000 and 2009, including the year 2007, when Vietnam joined the World Trade Organization (WTO). Our major findings are twofold. First, the productivity of entrants, survivors, and exiters increased simultaneously from 2006 to 2007. This result suggests that the cutoff productivity level increased after trade liberalization. Second, the resource reallocation between firms was facilitated after the liberalization. These findings are consistent with the implications of the recent models of international trade and firm heterogeneity.

Suggested Citation

  • Doan Thi Thanh Ha & Kozo KIYOTA, 2014. "Firm-level Evidence on Productivity Differentials and Turnover in Vietnamese Manufacturing," Working Papers DP-2014-07, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:dp-2014-07
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    Cited by:

    1. Yane, Haruka & Yamada, Hiroyuki, 2015. "Import Competition from Neighbors: Impacts on Performances of Enterprises in Vietnam," Conference papers 332621, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Doan Thi Thanh Ha & Kozo Kiyota, 2015. "Misallocation, Productivity, and Trade Liberalization: The Case of Vietnamese Manufacturing," Keio-IES Discussion Paper Series 2015-007, Institute for Economics Studies, Keio University.
    3. Nguyen, Huong, 2016. "Ease of Doing Business Reforms in Vietnam: Implications for Total Factor Productivity in Manufacturing Industries," Papers 999, World Trade Institute.
    4. Fabrice Defever & Alejandro Riaño, 2017. "Twin peaks," CEP Discussion Papers dp1505, Centre for Economic Performance, LSE.
    5. Thanh Doan, Ha Thi, 2019. "Multi-product Firms, Tariff Liberalization, and Product Churning in Vietnamese Manufacturing," ADBI Working Papers 918, Asian Development Bank Institute.
    6. Viet Nguyen, Thanh & Simioni, Michel & Le Van, Dao, 2019. "Assessment of TFP change at provincial level in Vietnam: New evidence using Färe–Primont productivity index," Economic Analysis and Policy, Elsevier, vol. 64(C), pages 329-345.
    7. Stephan Kyburz, Huong Quynh Nguyen, 2017. "Does Proximity to Foreign Invested Firms Stimulate Productivity Growth of Domestic Firms? Firmlevel Evidence from Vietnam," Diskussionsschriften credresearchpaper16, Universitaet Bern, Departement Volkswirtschaft - CRED.
    8. Doan Thi Thanh Ha & Kozo Kiyota & Kenta Yamanouchi, 2016. "Misallocation and Productivity: The Case of Vietnamese Manufacturing," Asian Development Review, MIT Press, vol. 33(2), pages 94-118, September.
    9. Le, Manh-Duc & Pieri, Fabio & Zaninotto, Enrico, 2019. "From central planning towards a market economy: The role of ownership and competition in Vietnamese firms’ productivity," Journal of Comparative Economics, Elsevier, vol. 47(3), pages 693-716.
    10. Hanh Vu Thi, 2015. "Essays on the Export Performance of Vietnam/Essais sur la Performance à l'Exportation du Vietnam," ULB Institutional Repository 2013/216765, ULB -- Universite Libre de Bruxelles.
    11. Vu, Mai T.P. & Bellone, Flora & Dovis, Marion, 2018. "Productivity and wage premiums: Evidence from Vietnamese ordinary and processing exporters," International Economics, Elsevier, vol. 154(C), pages 48-67.
    12. Jaax, Alexander, 2020. "Private sector development and provincial patterns of poverty: Evidence from Vietnam," World Development, Elsevier, vol. 127(C).
    13. Nguyen, Huong, 2016. "Does Proximity to Foreign Invested Firms Stimulate Productivity Growth of Domestic Firms? Firm-level Evidence from Vietnam," Papers 1001, World Trade Institute.
    14. Bacchetta, Marc & Helble, Matthias (ed.), 2020. "Trade Adjustment in Asia: Past Experiences and Lessons Learned," ADBI Books, Asian Development Bank Institute, number 12, Décembre.
    15. Mustapha Douch & Huw Edwards & Sushanta Mallick, 2022. "The UK Productivity Puzzle: Does Firm Cohort matter for their Performance following the Financial Crisis?," Bank of Lithuania Working Paper Series 101, Bank of Lithuania.
    16. Nguyen, Huong Quynh, 2017. "Business reforms and total factor productivity in Vietnamese manufacturing," Journal of Asian Economics, Elsevier, vol. 51(C), pages 33-42.
    17. Mai Huong Giang & Tran Dang Xuan & Bui Huy Trung & Mai Thanh Que, 2019. "Total Factor Productivity of Agricultural Firms in Vietnam and Its Relevant Determinants," Economies, MDPI, vol. 7(1), pages 1-12, January.
    18. Tien Manh Vu & Hiroyuki Yamada & Tsunehiro Otsuki, 2014. "The rise and fall of multinational enterprises in Vietnam: survival analysis using census data during 2000-2011," OSIPP Discussion Paper 14E001, Osaka School of International Public Policy, Osaka University.

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    More about this item

    Keywords

    Total factor productivity; Aggregate productivity; Trade Liberalization; Firm turnover; Vietnam;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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