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Productivity and Wage Premiums: Evidence from Vietnamese Ordinary and Processing Exporters

Mai Vu (), Flora Bellone () and Marion Dovis ()

No 2017-36, GREDEG Working Papers from Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis

Abstract: We propose some new stylized facts on Vietnamese exporters that emphasize firm heterogeneity in trade regimes and firm ownership. We show first that the distribution of firms export intensities is U-shaped with more than half of Vietnamese exporters exporting more than 50% of their output. This contrasts with the export patterns in industrialized countries but is similar to the export intensity distribution for other emerging economies with strong participation in global value chains. Second, we show that export premia, evaluated in terms of both productivity and wage indexes, are positive only for Vietnamese exporters involved primarily in ordinary trade, and that processing exporters exhibit lower productivity indexes and pay lower wages than their non-exporting counterparts. This pattern is more pronounced among the group of foreign-owned firms in Vietnam compared to the group of domestic firms and is in line with previous ndings for China.

Keywords: Processing trade; wage; firm productivity; firm-level data; Vietnam (search for similar items in EconPapers)
JEL-codes: F10 F14 L60 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eff, nep-int, nep-sea and nep-tra
Date: 2017-12
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