Does Export Destination Affect Firm Productivity? Evidence From Small- and Medium-Sized Enterprises in the Vietnamese Manufacturing Sector. Issue 1 (2nd January 2020)

• Record Type: Journal Article
• Authors: Vo, Diem Thi Hong; Sun, Sizhong; Phan, Chung Thanh
• Is Part Of: Global economic review. Volume 49:Issue 1(2020)
• Page Start: 23
• Page End: 42
• Publication Date: 2020-01-02
• Subjects: Export destination -- Productivity -- Learning by exporting -- Instrument variables -- Vietnamese SMEs; D21 -- D24 -- F14 -- O54; International economic relations -- Periodicals; Economic history -- 1990- -- Periodicals; East and West -- Periodicals; 337.05
• DOI: 10.1080/1226508X.2020.1726197
• Languages: English
• ISSNs: 1226-508X

Abstract

ABSTRACT: This study investigates the impact of export destinations on the productivity of small- and medium-sized enterprises (SMEs) in the Vietnamese manufacturing sector (2007–2013), using fixed effects and instrumental variables to control for possible endogeneity of export in our estimation. Empirical results indicate that export does not significantly improve the productivity of SMEs. In addition, we also consider whether export to developed (and developing) countries differently affects firm productivity in our exercise, and our results suggest no evidence of learning by exporting to developed (and developing) countries. For other factors, firm age and capital intensity are found to have negative impacts on firm productivity, while human capital-related factors, innovation activities, and government assistances show positive and significant productivity effects.