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Firm-level Evidence on Productivity Differentials and Turnover in Vietnamese Manufacturing

Ha Doan and Kozo Kiyota

No DP-2014-07, Working Papers from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: This paper examines the relationship between productivity differentials and firm turnover in Vietnamese manufacturing. We utilize firm-level data between 2000 and 2009, including the year 2007, when Vietnam joined the World Trade Organization (WTO). Our major findings are twofold. First, the productivity of entrants, survivors, and exiters increased simultaneously from 2006 to 2007. This result suggests that the cutoff productivity level increased after trade liberalization. Second, the resource reallocation between firms was facilitated after the liberalization. These findings are consistent with the implications of the recent models of international trade and firm heterogeneity.

Keywords: Total factor productivity; Aggregate productivity; Trade Liberalization; Firm turnover; Vietnam (search for similar items in EconPapers)
JEL-codes: O12 D22 O47 F14 (search for similar items in EconPapers)
Pages: 45 pages.
Date: 2014-04
New Economics Papers: this item is included in nep-bec, nep-eff, nep-int, nep-sea and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19) Track citations by RSS feed

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