Productivity analysis for Vietnam’s textile and garment industry

Nguyen Thang, Thanh To and Vu Hoang Dat
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Nguyen Thang: Centre for Analysis and Forecasting, Vietnam Academy of Social Sciences, Hanoi, Vietnam
Vu Hoang Dat: Centre for Analysis and Forecasting, Vietnam Academy of Social Sciences, Hanoi, Vietnam

Philippine Review of Economics, 2006, vol. 43, issue 1, 131-166

Abstract: The study uses firm-level panel data to study the technical efficiency performance of Vietnam’s textile and garment firms in the period 1997-2000, as well as its determinants. The model used is that of Battese and Coelli [1995]. The average estimated technical efficiency of the two subsectors is relatively high. In the textile subsector, medium-old, South-based, private, export-oriented, and highly equipped firms are found to be more technically efficient than those with differing characteristics. In the garment subsector, large or old-medium, south-based, and high external capital firms have higher technical efficiency. Meanwhile, small, old, and highly equipped firms have lower technical efficiency than firms with other characteristics. The total factor productivity (TFP) picture of the textile subsector is mixed, whereas the TFP growth of the garment subsector is positive, although this growth decreases.

Keywords: technical efficiency; total factor productivity; Vietnam’s textile and garment (search for similar items in EconPapers)
JEL-codes: O33 O47 (search for similar items in EconPapers)
Date: 2006
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