Does rising import competition harm Vietnam’s local firm employment of the 2000s?

Truc Le Nguyen, Huong Vu Van, Lam Duc Nguyen and Tuyen Tran

Economic Research-Ekonomska Istraživanja, 2017, vol. 30, issue 1, 1882-1895

Abstract: This study considers for the first time the role of rising import competition on employment in Vietnam. Using a time differenced and instrumental variables approach, our study shows that import competition results in employment contraction. Firms operating in industries that face greater import competition have reduced employment. We also find strong evidence of a negative impact of import competition for small and very small firms, as well as in the period before Vietnam’s World Trade Organization (WTO) accession. Our results also reveal that previous studies at the industry-level can provide biased estimates because of not controlling for the heterogeneity of firm characteristics.

Date: 2017
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DOI: 10.1080/1331677X.2017.1392883

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