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Superiority of Exporters and the Causality Between Exporting and Firm Characteristics in Vietnam

Author

Listed:
  • Nguyen Hiep

    (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan)

  • Hiroshi Ohta

    (Graduate School of International Cooperation Studies (GSICS), Kobe University, Japan)

Abstract

The study in this paper is on the causal relationship between export activities of firms and their characteristics in a transition country that is pursuing export-led growth strategies and experiencing a fast track of trade liberalization. For this purpose, we examine the superiority of exporters using a panel of firm-level data of manufacturing firms in Vietnam. We observe that exceptional performance of exporters, especially in TFP, does prevail in this country. Via testing self-selection hypothesis using a random-effects dynamic probit model to examine the causality from firm characteristics to export probability, we find significantly positive impacts of factors such as firm size, age or foreign ownership but not that of TFP. However, TFP superiority of exporters is satisfactorily explained by the existence of learning-by-exporting effects that are tested in a multivariate analysis using matching technique in combination with difference-in-differences approach. Besides contributing an empirical analysis to heterogeneous-firm trade theories, this study gives us some insights into the interpretation of mixed findings in macro-analysis of the effects of exports on growth in Vietnam.

Suggested Citation

  • Nguyen Hiep & Hiroshi Ohta, 2009. "Superiority of Exporters and the Causality Between Exporting and Firm Characteristics in Vietnam," Discussion Paper Series 239, Research Institute for Economics & Business Administration, Kobe University.
  • Handle: RePEc:kob:dpaper:239
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    File URL: http://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/dp239.pdf
    File Function: First version, 2009
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    Citations

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    Cited by:

    1. Arslan Razmi, 2009. "Must Improved Labor Standards Hurt Accumulation in the Targeted Sector? Stylized Analysis of a Developing Economy," UMASS Amherst Economics Working Papers 2009-09, University of Massachusetts Amherst, Department of Economics.
    2. Jimenez, Gonzalo Hernandez & Razmi, Arslan, 2013. "Can Asia sustain an export-led growth strategy in the aftermath of the global crisis? Exploring a neglected aspect," Journal of Asian Economics, Elsevier, vol. 29(C), pages 45-61.
    3. Channing Arndt, 2017. "New data, new approaches and new evidence: A policy synthesis," WIDER Working Paper Series 202, World Institute for Development Economic Research (UNU-WIDER).

    More about this item

    Keywords

    Exporter superiority; Self-selection; Learning-by-exporting; Vietnam;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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