Vietnam’s footwear export: The direction of trade and determinants of firms’ market penetration
Main Article Content
Abstract
We investigate determinants of firms’ direction of trade by using panel data of Vietnam’s footwear firms for the 2006-2010 period. Since no variance was found between firms, a pooled multinomial logit model is consequently preferable. Notably, the economies of scale show positive and significant effects for footwear firms serving the USA and EU markets. Although Vietnamese footwear firms are less likely to export to the ASEAN countries, they tend to focus on the diversification of products in this market. Both private and FDI firms are less likely to export to the EU compared with their counter parts owned by the State (SOEs). However, private firms outperform SOES in the U.S market.
Article Details
Keywords
Direction of trade, footwear, export firms, multinomial logit, Vietnam
References
1. Aggrey N, Eliab L and Joseph S (2010), ‘Determinants of Exports Participation in East African Manufacturing Firms’, Current Research Journal of Economic Theory, 2(2), pp. 55-61.
2. Amable B (2000), ‘International Specialisation and Growth’. Structural Change and Economi Dynamics, 11(4), pp. 413-432.
3. Amornkitvikai Y, Harvie C and Charroenrat Y (2012), Factors Affecting the Export Participation and Performance of Thai Manufacturing Small and Medium Sized Enterprises (SMEs), 57th International Council for Small Business World Conference, 1-36, Wellington, New-Zealand.
4. Arrow K J (1962), ‘Economic Welfare and the Allocation of Resources for Invention’, Welfare Economics and Inventive Activity, pp. 609-626.
5. Aw B, Chung Y S and Roberts M J (2000), ‘Productivity and Turnover in the Export Market: Micro-Level Evidence from the Republic of Korea and Taiwan (China)’.
World Bank Economic Review, Oxford University Press, 14 (1), pp. 65-90.
6. Balwin R J and Gu W (2004), Innovation, Survival and Performance of Canadian Manufacturing Plants, Statistics Canada Catalogue no. 11F0027M. Economic Analysis (EA) Research Paper Series. No. 22.
7. Bastos P and Silva J (2010), ‘The Quality of a Firm’s Exports: Where You Export to Matters’, Journal of International Economics, 82, pp. 99-111.
8. Bernard A B and Jensen J B (1999), ‘Exceptional Exporter Performance: Cause, Fffect or Both?’, Journal of International Economics, 47(1), pp.1-25.
9. Bernard A B and Wagner J B (1997), ‘Exports and Success in German Manufacturing’, Weltwirtschaftliches Archiv/Review of World Economics, 137(1), pp.105-23.
10. Bernard A B and Jensen J B (2004), ‘Exporting and the Productivity in the USA’, Oxford Review of Economic Policy, 20(3), pp.343-57.
11. Biesebroeck J V (2005), ‘Exporting Raises Productivity in Sub-Saharan African Manufacturing Firms’, Journal of International Economics, 67, pp. 373-91.
12. Bigsten A, Collier P, Dercon S, Fafchamps M, Gauthier B, Gunning J W, Oduro A, Oostendorp R, Pattillo C, Söderbom M, Teal F and Zeufack A (2000), Exports and Firm-Level Efficiency in African Manufacturing Mimeo. Centre for the Study of African Economies at Oxford University, Oxford.
13. Clerides S, Lach S and Tybout J (1998), ‘Is Learning by Exporting Important? Micro - Dynamic Evidence From Colombia, Mexico and Morocco’, Quarterly Journal of Economics 113, pp. 903-48.
14. Delgado W A, Fariñas J C and Ruano S (2002), ‘Firm Productivity and Export Markets: A Non Parametric Approach’, Journal of International Economics, 57, pp. 397-422.
15. Ethier W J (1979), ‘Internationally decreasing costs and world trade’, Journal of International Economics, 9, pp. 1-24.
16. Fakih A and Ghazalian L P (2013), Why Some Firms Export? An Empirical Analysis for Manufacturing Firms in the MENA Region. IZA DP No. 7172.
17. Farole T and Winkler D (2011), Firm Location and the Determinants of Exporting in Developing Countries, International Trade Department of the World Bank, Policy Research Working Paper 5780.
18. Fernandes A M and Isgut A E (2005), Learning-by-Doing, Learning-by-Exporting, and Productivity: Evidence from Colombia, Policy Research Working Paper Series 3544, the World Bank.
19. Funke M and Ruhwedel R (2001), Product variety and economic growth: Empirical Evidence for the OECD countries, IMF Staff Papers No. 48, pp. 225–42.
20. Helpman E (1984), ‘A Simple Theory of International Trade with Multinational Corporations’, Journal of Political Economy, 92(3), pp. 451-71.
21. Hottop U, Radosevic S and Bishop K (2005), ‘Trade and Industrial Upgrading in Countries in Central and Eastern Europe: Patterns of Scale and Scope-Based Learning’, Emerging Markets, Finance and Trade, 41(4), pp. 20-37.
22. Iyer K (2010), ‘The Determinants of Firm-Level Export Intensity in New Zealand Agricultural and Forestry’, Economic Analysis & Policy, 40(1), pp.75-86.
23. Javalgi G R, White D D and Lee O (2000), ‘Firm Characteristics Influencing Export Propensity: an Empirical Investigation by Industry Type’. Journal of Business Research, 47(3), pp. 217-28.
24. Krugman P R (1980), ‘Scale Economies, Product Differentiation, and the Pattern of Trade’, The American Economic Review, 70(5), pp. 950-59.
25. Laursen K (2000), Trade Specialisation, Technology and Economic Growth - Theory and Evidence from Advanced Countries. Cheltenham, UK.
26. Loecker J (2007), ‘Do Exports Generate Higher Productivity? Evidence from Slovenia’, Journal of International Economics, 37, pp. 69-98.
27. Majumdar K S (1997), ‘The Impact of Size and Age on Firm-Level Performance: Some Evidence from India’, Review of Industrial Organization, 12, pp. 231-41.
28. Melitz M J (2003), ‘The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity’, Econometrica, 71(6), pp.1695-1725.
29. Michiel V D (2002), The Determinants of Export Performance in Developing Countries: The Case of Indonesian Manufacturing, Eindhoven Centre for Innovation Studies, Working Paper 02.01, Department of Technology Management, Technische Universiteit Eindhoven, The Netherlands.
30. Mukim M (2011), Does Exporting Increase Productivity? Evidence from India, World Bank Paper Series.
31. Muûls M and Pisu M (2009), ‘Imports and Exports at the Level of the Firm: Evidence from Belgium’, The World Economy, 32(5), pp. 692-734.
32. Özçelic E and Taymaz. E (2003), ‘Does Innovativeness Matter for International Competitiveness in Developing Countries? The Case of Turkish Manufacturing Industries’, Research Policy, 33, pp. 409-24.
33. Papadogonas T, Voulgaris F and Agiomirgianakis G (2007), ‘Determinants of Export Behavior in the Greek Manufacturing Sector’, Operational Research, 7(1), pp.121-35.
34. Peneder M (2002), Industrial Structure and Aggregate Growth, WIFO Working Paper 182.
35. Rankin N, Söderbom M and Teal F (2006), ‘Exporting from Manufacturing Firms in Sub-Saharan Africa’, Journal of African Economies, 15(4), pp. 671-87.
36. Rankin N, Söderbom M and Teal F (2006), ‘Exporting from Manufacturing Firms in Sub-Saharan Africa’, Journal of African Economies, 15(4), pp. 671-87.
37. Robson J A, Akuetteh C K, Westhead P and Wright M (2012), ‘Exporting Intensity, Human Capital And Business Ownership Experience’, International Small Business Journal, 30(4), pp. 367-87.
38. Sleptsova E (2010), Exports from Ukraine to the European Union: Macro - Mirco and Political Economy Determinants, Doctoral thesis, University of Birmingham.
39. Sofronis K C, Saul L and James R T (1998), ‘Is Learning by Exporting Important? Micro-Dynamic Evidence from Colombia, Mexixo, and Morocco’. The Quarterly Journal of Economics, Oxford University Press, 113(3), pp. 903-947.
40. Sousa C and Bradley F (2009), ‘Effects of Export Assistance and Distributor Support on the Performance of SMEs: The Case of Portuguese Export Ventures’, International Small Business Journal, 27(6), pp. 681-701.
41. Wagner J (2007), ‘Exports and Productivity: A Survey of the Evidence from FirmLevel Data’, The World Economy, 30(1), pp. 60-82.
42. Wagner J (2007), ‘Exports and Productivity: A Survey of the Evidence from FirmLevel Data’, The World Economy, 30(1), pp. 60-82.
2. Amable B (2000), ‘International Specialisation and Growth’. Structural Change and Economi Dynamics, 11(4), pp. 413-432.
3. Amornkitvikai Y, Harvie C and Charroenrat Y (2012), Factors Affecting the Export Participation and Performance of Thai Manufacturing Small and Medium Sized Enterprises (SMEs), 57th International Council for Small Business World Conference, 1-36, Wellington, New-Zealand.
4. Arrow K J (1962), ‘Economic Welfare and the Allocation of Resources for Invention’, Welfare Economics and Inventive Activity, pp. 609-626.
5. Aw B, Chung Y S and Roberts M J (2000), ‘Productivity and Turnover in the Export Market: Micro-Level Evidence from the Republic of Korea and Taiwan (China)’.
World Bank Economic Review, Oxford University Press, 14 (1), pp. 65-90.
6. Balwin R J and Gu W (2004), Innovation, Survival and Performance of Canadian Manufacturing Plants, Statistics Canada Catalogue no. 11F0027M. Economic Analysis (EA) Research Paper Series. No. 22.
7. Bastos P and Silva J (2010), ‘The Quality of a Firm’s Exports: Where You Export to Matters’, Journal of International Economics, 82, pp. 99-111.
8. Bernard A B and Jensen J B (1999), ‘Exceptional Exporter Performance: Cause, Fffect or Both?’, Journal of International Economics, 47(1), pp.1-25.
9. Bernard A B and Wagner J B (1997), ‘Exports and Success in German Manufacturing’, Weltwirtschaftliches Archiv/Review of World Economics, 137(1), pp.105-23.
10. Bernard A B and Jensen J B (2004), ‘Exporting and the Productivity in the USA’, Oxford Review of Economic Policy, 20(3), pp.343-57.
11. Biesebroeck J V (2005), ‘Exporting Raises Productivity in Sub-Saharan African Manufacturing Firms’, Journal of International Economics, 67, pp. 373-91.
12. Bigsten A, Collier P, Dercon S, Fafchamps M, Gauthier B, Gunning J W, Oduro A, Oostendorp R, Pattillo C, Söderbom M, Teal F and Zeufack A (2000), Exports and Firm-Level Efficiency in African Manufacturing Mimeo. Centre for the Study of African Economies at Oxford University, Oxford.
13. Clerides S, Lach S and Tybout J (1998), ‘Is Learning by Exporting Important? Micro - Dynamic Evidence From Colombia, Mexico and Morocco’, Quarterly Journal of Economics 113, pp. 903-48.
14. Delgado W A, Fariñas J C and Ruano S (2002), ‘Firm Productivity and Export Markets: A Non Parametric Approach’, Journal of International Economics, 57, pp. 397-422.
15. Ethier W J (1979), ‘Internationally decreasing costs and world trade’, Journal of International Economics, 9, pp. 1-24.
16. Fakih A and Ghazalian L P (2013), Why Some Firms Export? An Empirical Analysis for Manufacturing Firms in the MENA Region. IZA DP No. 7172.
17. Farole T and Winkler D (2011), Firm Location and the Determinants of Exporting in Developing Countries, International Trade Department of the World Bank, Policy Research Working Paper 5780.
18. Fernandes A M and Isgut A E (2005), Learning-by-Doing, Learning-by-Exporting, and Productivity: Evidence from Colombia, Policy Research Working Paper Series 3544, the World Bank.
19. Funke M and Ruhwedel R (2001), Product variety and economic growth: Empirical Evidence for the OECD countries, IMF Staff Papers No. 48, pp. 225–42.
20. Helpman E (1984), ‘A Simple Theory of International Trade with Multinational Corporations’, Journal of Political Economy, 92(3), pp. 451-71.
21. Hottop U, Radosevic S and Bishop K (2005), ‘Trade and Industrial Upgrading in Countries in Central and Eastern Europe: Patterns of Scale and Scope-Based Learning’, Emerging Markets, Finance and Trade, 41(4), pp. 20-37.
22. Iyer K (2010), ‘The Determinants of Firm-Level Export Intensity in New Zealand Agricultural and Forestry’, Economic Analysis & Policy, 40(1), pp.75-86.
23. Javalgi G R, White D D and Lee O (2000), ‘Firm Characteristics Influencing Export Propensity: an Empirical Investigation by Industry Type’. Journal of Business Research, 47(3), pp. 217-28.
24. Krugman P R (1980), ‘Scale Economies, Product Differentiation, and the Pattern of Trade’, The American Economic Review, 70(5), pp. 950-59.
25. Laursen K (2000), Trade Specialisation, Technology and Economic Growth - Theory and Evidence from Advanced Countries. Cheltenham, UK.
26. Loecker J (2007), ‘Do Exports Generate Higher Productivity? Evidence from Slovenia’, Journal of International Economics, 37, pp. 69-98.
27. Majumdar K S (1997), ‘The Impact of Size and Age on Firm-Level Performance: Some Evidence from India’, Review of Industrial Organization, 12, pp. 231-41.
28. Melitz M J (2003), ‘The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity’, Econometrica, 71(6), pp.1695-1725.
29. Michiel V D (2002), The Determinants of Export Performance in Developing Countries: The Case of Indonesian Manufacturing, Eindhoven Centre for Innovation Studies, Working Paper 02.01, Department of Technology Management, Technische Universiteit Eindhoven, The Netherlands.
30. Mukim M (2011), Does Exporting Increase Productivity? Evidence from India, World Bank Paper Series.
31. Muûls M and Pisu M (2009), ‘Imports and Exports at the Level of the Firm: Evidence from Belgium’, The World Economy, 32(5), pp. 692-734.
32. Özçelic E and Taymaz. E (2003), ‘Does Innovativeness Matter for International Competitiveness in Developing Countries? The Case of Turkish Manufacturing Industries’, Research Policy, 33, pp. 409-24.
33. Papadogonas T, Voulgaris F and Agiomirgianakis G (2007), ‘Determinants of Export Behavior in the Greek Manufacturing Sector’, Operational Research, 7(1), pp.121-35.
34. Peneder M (2002), Industrial Structure and Aggregate Growth, WIFO Working Paper 182.
35. Rankin N, Söderbom M and Teal F (2006), ‘Exporting from Manufacturing Firms in Sub-Saharan Africa’, Journal of African Economies, 15(4), pp. 671-87.
36. Rankin N, Söderbom M and Teal F (2006), ‘Exporting from Manufacturing Firms in Sub-Saharan Africa’, Journal of African Economies, 15(4), pp. 671-87.
37. Robson J A, Akuetteh C K, Westhead P and Wright M (2012), ‘Exporting Intensity, Human Capital And Business Ownership Experience’, International Small Business Journal, 30(4), pp. 367-87.
38. Sleptsova E (2010), Exports from Ukraine to the European Union: Macro - Mirco and Political Economy Determinants, Doctoral thesis, University of Birmingham.
39. Sofronis K C, Saul L and James R T (1998), ‘Is Learning by Exporting Important? Micro-Dynamic Evidence from Colombia, Mexixo, and Morocco’. The Quarterly Journal of Economics, Oxford University Press, 113(3), pp. 903-947.
40. Sousa C and Bradley F (2009), ‘Effects of Export Assistance and Distributor Support on the Performance of SMEs: The Case of Portuguese Export Ventures’, International Small Business Journal, 27(6), pp. 681-701.
41. Wagner J (2007), ‘Exports and Productivity: A Survey of the Evidence from FirmLevel Data’, The World Economy, 30(1), pp. 60-82.
42. Wagner J (2007), ‘Exports and Productivity: A Survey of the Evidence from FirmLevel Data’, The World Economy, 30(1), pp. 60-82.