Productivity growth and job reallocation: Evidence from the garment industry in Vietnam

Thanh Tam Nguyen-Huu (), Khac Minh Nguyen and Mai Lan Phung
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Thanh Tam Nguyen-Huu: Métis Lab EM Normandie - EM Normandie - École de Management de Normandie = EM Normandie Business School
Khac Minh Nguyen: Thang Long University
Mai Lan Phung: Thuyloi University

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Abstract: The paper investigates the aggregate productivity decomposition in the garment industry of Vietnam between 2000 and 2016. According to the Olley-Pack decomposition, there is an improvement in aggregate productivity because garment firms become more productive and there is some job reallocation from less to more productive firms. Meanwhile, the dynamic decomposition indicates that aggregate productivity growth is mainly driven by the dynamic entry-exit flow of firms. When firm ownership is considered, the productivity growth of private firms is principally conducted by their dynamic entry-exit flow, and to a lesser extent, by the productivity improvement of survivor firms. Differently, the dynamic entry-exit flow is the sole factor leading to the productivity growth of stateown-enterprises and foreign firms.

Keywords: Productivity decomposition; Job reallocation; Productivity improvement; Entry-exit flow; Vietnam (search for similar items in EconPapers)
Date: 2020
Note: View the original document on HAL open archive server: https://hal.science/hal-04248216v1
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Published in Région et Développement, 2020, 52, pp.5-19

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04248216

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