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Productivity and Wage Premiums: Evidence from Vietnamese Ordinary and Processing Exporters

Author

Listed:
  • Mai T.P. Vu

    (Foreign Trade University)

  • Flora Bellone

    (Université Côte d'Azur
    GREDEG CNRS)

  • Marion Dovis

    (Aix-Marseille University
    GREQAM)

Abstract

We propose some new stylized facts on Vietnamese exporters that emphasize firm heterogeneity in trade regimes and firm ownership. We show first that the distribution of firms export intensities is U-shaped with more than half of Vietnamese exporters exporting more than 50% of their output. This contrasts with the export patterns in industrialized countries but is similar to the export intensity distribution for other emerging economies with strong participation in global value chains. Second, we show that export premia, evaluated in terms of both productivity and wage indexes, are positive only for Vietnamese exporters involved primarily in ordinary trade, and that processing exporters exhibit lower productivity indexes and pay lower wages than their non-exporting counterparts. This pattern is more pronounced among the group of foreign-owned firms in Vietnam compared to the group of domestic firms and is in line with previous ndings for China.

Suggested Citation

  • Mai T.P. Vu & Flora Bellone & Marion Dovis, 2017. "Productivity and Wage Premiums: Evidence from Vietnamese Ordinary and Processing Exporters," GREDEG Working Papers 2017-36, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis.
  • Handle: RePEc:gre:wpaper:2017-36
    as

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    File URL: http://www.gredeg.cnrs.fr/working-papers/GREDEG-WP-2017-36.pdf
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    References listed on IDEAS

    as
    1. Sofronis K. Clerides & Saul Lach & James R. Tybout, 1998. "Is Learning by Exporting Important? Micro-Dynamic Evidence from Colombia, Mexico, and Morocco," The Quarterly Journal of Economics, Oxford University Press, vol. 113(3), pages 903-947.
    2. Joachim Wagner, 2007. "Exports and Productivity: A Survey of the Evidence from Firm-level Data," The World Economy, Wiley Blackwell, vol. 30(1), pages 60-82, January.
    3. Yong-Seok Choi & Siwook Lee, 2013. "Productivity, Markups and Export Intensity: Evidence from Korean Manufacturing," Korean Economic Review, Korean Economic Association, vol. 29, pages 329-350.
    4. Hansson, Pär & Lundin, Nan Nan, 2003. "Exports as an Indicator on or Promoter of Successful Swedish Manufacturing Firms in the 1990s," Working Paper Series 189, Trade Union Institute for Economic Research.
    5. repec:eee:asieco:v:52:y:2017:i:c:p:56-76 is not listed on IDEAS
    6. Mary Hallward-Driemeier & Giuseppe Iarossi & Kenneth L. Sokoloff, 2002. "Exports and Manufacturing Productivity in East Asia: A Comparative Analysis with Firm-Level Data," NBER Working Papers 8894, National Bureau of Economic Research, Inc.
    7. Carmine ORNAGHI & Ilke VAN BEVEREN, 2011. "Using proxy variables to control for unobservables when estimating productivity: A sensitivity analysis," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2011029, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    8. Aw, Bee Yan & Chung, Sukkyun & Roberts, Mark J, 2000. "Productivity and Turnover in the Export Market: Micro-level Evidence from the Republic of Korea and Taiwan (China)," World Bank Economic Review, World Bank Group, vol. 14(1), pages 65-90, January.
    9. Anh Ngoc Nguyen & Ngoc Quang Pham & Chuc Dinh Nguyen & Nhat Duc Nguyen, 2008. "Innovation and exports in Vietnam's SME sector," The European Journal of Development Research, Taylor and Francis Journals, vol. 20(2), pages 262-280.
    10. Anwar, Sajid & Nguyen, Lan Phi, 2011. "Foreign direct investment and export spillovers: Evidence from Vietnam," International Business Review, Elsevier, vol. 20(2), pages 177-193, April.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Processing trade; wage; firm productivity; firm-level data; Vietnam;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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