Export Intensity and Impacts from Firm Characteristics, Domestic Competition and Domestic Constraints in Vietnam: A Micro-data Analysis

Hiep Nguyen and Shoji Nishijima

No 238, Discussion Paper Series from Research Institute for Economics & Business Administration, Kobe University

Abstract: This study examines how a firm's characteristics, perceived competition intensity and constraints in the domestic market affect the intensity of its exports in a transition country that is pursuing export-led growth strategies. Specifically, we employ a cross-sectional micro-data set derived from the World Bank's survey on productivity and investment climate in Vietnam in 2005 in an empirical analysis that properly controls for possible sample selection and endogeneity. Besides observing that those firms that have acquired some level of integration and taken advantage of labor-abundant economy have higher export intensity, we can also find that perceived competition in the domestic market induces firms to intensify their sales in foreign markets relative to that in the domestic one. Furthermore, it is interesting to find that even in a developing country like Vietnam, it is not constraints in domestic physical infrastructure and factor markets that hinder firms from increasing their intensity of exports, but obstacles in policy, administration and social environments that do matter. These findings support the implication that it is reasonable and feasible in the context of recent global crisis that priorities should be set for reforms in "soft" infrastructure in order to help firms boost exports.

Keywords: Export intensity; domestic competition, Domestic constraints, Vietnamm (search for similar items in EconPapers)
JEL-codes: D21 D24 F10 F14 F43 L20 L60 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2009-03
References: Add references at CitEc
Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:kob:dpaper:238

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