Foreign and Domestic Firms: Long Run Employment Effects of Export Opportunities

Brian McCaig, Nina Pavcnik and Woan Foong Wong

No 19903, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We investigate a low-income country’s long run employment response to new export opportunities. The U.S.–Vietnam Bilateral Trade Agreement reduced U.S. import tariffs on exports from Vietnam. Employment grew faster in the industries most exposed to the U.S. tariff reductions and this was driven by foreign affiliates of multinationals entering Vietnam. Foreign entrants continue to expand employment long after entry--even after 16 years. Most foreign entrants are exporters and from East Asia, highlighting that opportunities created by bilateral agreements are not just limited to signing parties. Vietnam’s subsequent capacity growth allows it to export to other markets over time.

Keywords: Vietnam (search for similar items in EconPapers)
JEL-codes: F13 F14 O14 O19 (search for similar items in EconPapers)
Date: 2025-02
References: Add references at CitEc
Citations:

Downloads: (external link)
https://cepr.org/publications/DP19903 (application/pdf)

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:cpr:ceprdp:19903

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP19903

Access Statistics for this paper

More papers in CEPR Discussion Papers from Centre for Economic Policy Research 33 Great Sutton Street, London EC1V 0DX, UK.
Bibliographic data for series maintained by CEPR ().