Details
| Originalsprache | Englisch |
|---|---|
| Aufsatznummer | 2263532 |
| Fachzeitschrift | Economic Research-Ekonomska Istrazivanja |
| Jahrgang | 36 |
| Ausgabenummer | 3 |
| Publikationsstatus | Veröffentlicht - 2023 |
Abstract
The effect of total factor productivity (TFP) on exports particularly interests policy-makers and economists, but empirical evidence is ambiguous. This paper uses the 6-wave panel data in 2010-2015 to investigate the impact of TFP on export transitions at the firm level. We distinguish different types of export transitions, namely start, stop, continuity, fluctuation, and striving, and different phases of export transition. The Generalised Method of Moments (GMM) estimation is applied to control for endogeneity and unobserved time-invariant specific components. The results reveal that (i) the effect of productivity on export (the self-selection hypothesis) is heterogeneous, depending on specific sectors and types and phases of export transitions; (ii) productivity growth does not necessarily result in positive effects on and lead to participation in types and phases of export transitions. Our results also reveal strong evidence of favourable sunk cost in long-run export striving in nearly all sectors, and unlike previous studies, empirical results show a negative effect of sunk cost in some manufacturing sectors. Policy-makers should create dynamic comparative advantages and favourable environments for new exporters, focus the relevant policies on productivity stimulus, and strengthen the likelihood of survival for the domestic firms in the competitive global markets.
ASJC Scopus Sachgebiete
- Volkswirtschaftslehre, Ökonometrie und Finanzen (insg.)
- Volkswirtschaftslehre und Ökonometrie
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in: Economic Research-Ekonomska Istrazivanja, Jahrgang 36, Nr. 3, 2263532, 2023.
Publikation: Beitrag in Fachzeitschrift › Artikel › Forschung › Peer-Review
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TY - JOUR
T1 - The impact of productivity on export transitions
T2 - revisited evidence from the Vietnamese manufacturing sectors
AU - Ngo, Thanh Quang
AU - Nguyen, Canh Thi
AU - Nguyen, Trung Thanh
AU - Duong, Khoa Dang
AU - Nguyen, Sang Van
AU - Bui, Thanh Xuan
AU - Tran, Ky Nguyen
N1 - Funding Information: This research is partly funded by the University of Economics Ho Chi Minh City (UEH), Vietnam. Canh Thi Nguyen: This research is partly supported by Vietnam National University- Ho Chi Minh City (VNU-HCM) under grant number NCM2019-34-01. The authors thank two anonymous reviewers and the editor for their excellent comments and constructive suggestions.
PY - 2023
Y1 - 2023
N2 - The effect of total factor productivity (TFP) on exports particularly interests policy-makers and economists, but empirical evidence is ambiguous. This paper uses the 6-wave panel data in 2010-2015 to investigate the impact of TFP on export transitions at the firm level. We distinguish different types of export transitions, namely start, stop, continuity, fluctuation, and striving, and different phases of export transition. The Generalised Method of Moments (GMM) estimation is applied to control for endogeneity and unobserved time-invariant specific components. The results reveal that (i) the effect of productivity on export (the self-selection hypothesis) is heterogeneous, depending on specific sectors and types and phases of export transitions; (ii) productivity growth does not necessarily result in positive effects on and lead to participation in types and phases of export transitions. Our results also reveal strong evidence of favourable sunk cost in long-run export striving in nearly all sectors, and unlike previous studies, empirical results show a negative effect of sunk cost in some manufacturing sectors. Policy-makers should create dynamic comparative advantages and favourable environments for new exporters, focus the relevant policies on productivity stimulus, and strengthen the likelihood of survival for the domestic firms in the competitive global markets.
AB - The effect of total factor productivity (TFP) on exports particularly interests policy-makers and economists, but empirical evidence is ambiguous. This paper uses the 6-wave panel data in 2010-2015 to investigate the impact of TFP on export transitions at the firm level. We distinguish different types of export transitions, namely start, stop, continuity, fluctuation, and striving, and different phases of export transition. The Generalised Method of Moments (GMM) estimation is applied to control for endogeneity and unobserved time-invariant specific components. The results reveal that (i) the effect of productivity on export (the self-selection hypothesis) is heterogeneous, depending on specific sectors and types and phases of export transitions; (ii) productivity growth does not necessarily result in positive effects on and lead to participation in types and phases of export transitions. Our results also reveal strong evidence of favourable sunk cost in long-run export striving in nearly all sectors, and unlike previous studies, empirical results show a negative effect of sunk cost in some manufacturing sectors. Policy-makers should create dynamic comparative advantages and favourable environments for new exporters, focus the relevant policies on productivity stimulus, and strengthen the likelihood of survival for the domestic firms in the competitive global markets.
KW - export transition
KW - heterogeneous firms
KW - manufacturing sectors
KW - Self-selection
KW - total factor productivity
KW - Vietnam
UR - http://www.scopus.com/inward/record.url?scp=85173747899&partnerID=8YFLogxK
U2 - 10.1080/1331677X.2023.2263532
DO - 10.1080/1331677X.2023.2263532
M3 - Article
AN - SCOPUS:85173747899
VL - 36
JO - Economic Research-Ekonomska Istrazivanja
JF - Economic Research-Ekonomska Istrazivanja
SN - 1331-677X
IS - 3
M1 - 2263532
ER -