Participation in global value chains and rent sharing at small firms in Vietnam

Nobuaki Yamashita and Doan Thi Thanh Ha

Asian Economic Journal, 2025, vol. 39, issue 1, 75-97

Abstract: It is well documented that firms that participate in global value chains (GVCs) are larger and more productive, maintaining higher profitability compared to those without such connections. This paper asks the novel question of whether higher profits being connected to GVCs are shared with employees in the form of better pay. We investigated this rent sharing, using a matched employer‐employee dataset of Vietnamese small firms surveyed between 2011 and 2015. There is no evidence for the presence of rent sharing in GVC‐participating firms. We take this as evidence that GVC firms provide both higher wages and insurance against wage shocks.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/asej.12348

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:asiaec:v:39:y:2025:i:1:p:75-97

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1351-3958

Access Statistics for this article

Asian Economic Journal is currently edited by Sung Yun-Wing and Shigeyuki Abe

More articles in Asian Economic Journal from East Asian Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().