Is digital transformation a barrier to export reduction during COVID-19? The case of a developing country

Nguyen Cam Thuy, Luong Van Dat, Do Phu Dong, Vu Thuy Linh and Thang Doan

Cogent Business & Management, 2023, vol. 10, issue 2, 2211218

Abstract: This paper investigates the impact of digital transformation on export reduction during COVID-19 by using unique data from Vietnamese manufacturing firms. Digital transformation reflects whether firms had already introduced digital technology before the COVID-19 outbreak or started using digital technology during the COVID-19 outbreak. Meanwhile, an export reduction is a partial de-internationalization in which firms decrease overseas sales. Estimation results from the instrumental variable probit method show that digital transformation has a negative effect on the probability of export reduction. This effect becomes particularly strong for micro, small and medium enterprises. Our findings have managerial implications for firm managers.

Date: 2023
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DOI: 10.1080/23311975.2023.2211218

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