Premature deindustrialization risk in Vietnam

Yuta Tsukada

Journal of Asian Business and Economic Studies, 2022, vol. 30, issue 3, 226-240

Abstract: Purpose - This study aims to examine the premature deindustrialization risk in Vietnam. Design/methodology/approach - This study uses a manufacturing–income relationship to conduct an empirical estimation. The latecomer index is adopted in the regression model to identify a downward shift of latecomer's relationship. Findings - The empirical analysis indicates that there is a risk of premature deindustrialization in the Northern Midlands and Mountain Areas. The provinces with low trade openness or foreign direct investment may experience risk of premature deindustrialization. Practical implications - This study proposes technology diffusion as a policy direction to prevent premature deindustrialization. Furthermore, the Vietnamese government should improve the business environment in the Northern Midlands and Mountain Areas by promoting and attracting export-oriented foreign direct investment. Originality/value - This study is the first to examine premature deindustrialization in Vietnam based on provincial-level data.

Keywords: Premature deindustrialization; Vietnam; Technology diffusion; Latecomer index; O11; O14; O25; O53 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eme:jabesp:jabes-04-2022-0082

DOI: 10.1108/JABES-04-2022-0082

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