Article Sidebar
Date Published:
30/03/2023
Abstract Views: 891
Views PDF: 457
Views PDF: 457
Issue
Section
Articles
How to Cite
Nguyen, N., Dao, T., & Nguyen, H. (2023). On the revision of detecting learning-by-exporting: empirical evidence from small- and medium-sized enterprises in Vietnam. Journal of International Economics and Management, 23(1), 1-13. https://doi.org/10.38203/jiem.023.1.0057
Metrics
On the revision of detecting learning-by-exporting: empirical evidence from small- and medium-sized enterprises in Vietnam
Main Article Content
Abstract
This study aims to identify the role of exports in improving the productivity of small- and medium-sized enterprises (SMEs) in Vietnam. By applying the propensity score matching method, we exploit the firm-level panel dataset from the Vietnam SME Survey between 2009 and 2014. This remarkable period occurred two years after Vietnam’s accession to the World Trade Organization. Hence, for the first time, the learning-by-exporting hypothesis was tested for a case study of SMEs in developing countries in the context of international trade integration, such as Vietnam. This paper shows that SMEs in Vietnam could improve their productivity when exporting during the studied period. We also find that exports have a significant impact on the productivity of SMEs in non-municipal areas of Vietnam. Based on these findings, policy recommendations are withdrawn for stimulating the productivity of SMEs in developing countries. In particular, SMEs in non-municipal provinces might need more favorable policies to boost export activities.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Keywords
Exporting, Total factor productivity, Learning-by-exporting, Vietnam, Small- and medium-sized enterprises
References
Abadie, A. and Imbens, G.W. (2016), “Matching on the estimated propensity score”, Econometrica, Vol. 84 No. 2, pp. 781 - 807.
Alvarez, R. and Lopez, R. (2005), “Exporting and performance: evidence from Chilean plants”, Canadian Journal of Economics, Vol. 38, pp. 1384 - 1400.
Arnold, J.M. and Hussinger, K. (2005), “Export behavior and firm productivity in German manufacturing: a firm-level analysis”, Review of World Economics, Vol. 141, pp. 219 - 243.
Aw, B.Y., Chung, S. and Roberts, M.J. (2000), “Productivity and turnover in the export market: micro-level evidence from the Republic of Korea and Taiwan (China)”, The World Bank Economic Review, Vol. 14 No. 1, pp. 65 - 90.
Baldwin, J. and Gu, W. (2004), “Trade liberalization: export-market participation, productivity growth, and innovation”, Oxford Review of Economic Policy, Vol. 20 No. 3, pp. 372 - 392.
Bellone, F., Musso, P., Nesta, L. and Quere, M. (2006), “The U-shaped productivity dynamics of french exporters”, Document de travail, OFCE.
Bernard, A. and Jensen, J.B. (1999), “Exceptional exporter performance: cause, effect, or both?”, Journal of International Economics, Vol. 47 No. 1, pp. 1 - 25.
Bernard, A. and Jensen, J.B. (2003), “Why some firms export?”, Review of Economics and Statistics, Vol. 86 No. 2, pp. 561 - 569.
Bernard, A. and Wagner, J. (1997), “Exports and success in German manufacturing”, Review of World Economics, Vol. 133, pp. 134 - 157.
Bigsten, A., Collier, P., Dercon, S., Fafchamps, M., Gauthier, B., Gunning, J.W., Oduro, A., Oostendorp, R., Pattillo, C., Soderbom., M., Teal, F. and Zeufack, A. (2004), “Do African manufacturing firms learn from exporting”, The Journal of Development Studies, Vol. 40 No. 3, pp. 115 - 141.
Binh, L.D. and Phuong, T.T. (2021), SME sector and the EVFTA.
Blalock, G. and Gertler, P.J. (2004), “Learning from exporting revisited in a less developed setting”, Journal of Development Economics, Vol. 75 No. 2, pp. 397 - 416.
Cameron, A.C. and Trivedi, P.K. (2005), Microeconometrics: methods and applications, Cambridge University Press, New York.
Castellani, D. (2002), “Export behaviour and productivity growth: evidence from Italian manufacturing firms”, Weltwirtschaftliches Archiv, Vol. 138, pp. 605 - 628.
Clarke, S., Akbari, M. and Far, S.M. (2017), “Vietnam’s trade policy: a developing nation assessment”, International Journal of Community Development and Management Studies, Vol. 1, pp. 14 - 37.
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, Vol. 113, pp. 903 - 947.
De Loecker, J. (2007), “Do exports generate higher productivity? Evidence from Slovenia”, Journal of International Economics, Vol. 73 No. 1, pp. 69 - 98.
De Loecker, J. (2013), “Detecting learning by exporting”, American Economic Journal: Microeconomics, Vol. 5 No. 3, pp. 1 - 21.
Delgado, M.A., Farinas, J.C. and Ruano, S. (2002), “Firm productivity and export markets: a non-parametric approach”, Journal of International Economics, Vol. 57, pp. 397 - 422.
Fafchamps, M. and Gubert, F. (2007), “The formation of risk sharing networks”, Journal of Development Economics, Vol. 83 No. 2, pp. 326 - 350.
Farinas, J.C. and Martin-Marcos, A. (2007), “Exporting and economic performance: firm‐level evidence of Spanish manufacturing”, The World Economy, Vol. 30 No. 4, pp. 618 - 646.
Girma, S., Greenaway, D. and Kneller, R. (2004), “Does exporting increase productivity? A microeconometric analysis of matched firms”, Review of International Economics, Vol. 12 No. 5, pp. 855 - 866.
Google, Temasek, and Bain and Company. (2020), e-Conomy SEA report: At full velocity: Resilient and racing ahead.
Greenaway, D. and Yu, Z. (2004), “Firm level interactions between exporting productivity: industry specific evidence”, GEP Research Paper, Vol. 1.
Greenaway, D., Gullstrand, J. and Kneller, R. (2005), “Exporting may not always boost firm productivity”, Review of World Economics, Vol. 141 No. 4, pp. 561 - 582.
Greenaway, D. and Kneller, R. (2008), “Exporting, productivity and agglomeration”, European Economic Review, Vol. 52 No. 5, pp. 919 - 939.
GSO. (2021), “Xuat khau truc tuyen: co phai la cay dua than cua doanh nghiep?”, Available at https://www.gso.gov.vn/tin-tuc-khac/2020/12/xuat-khau-truc-tuyen-co-phai-la-cay-dua-than-cua-doanh-nghiep/ (Accessed 10 March, 2022).
Hai, C.T. (2019), “Development of small and medium-sized enterprises in Vietnam today”, Vietnam Social Sciences, Vietnam Academy of Social Sciences, Vol. 11, pp. 18 - 26.
Helpman, E. and Krugman, P. (1985), Market structure and foreign trade: increasing returns, imperfect competition, and the international economy, MIT Press, Cambridge.
Hiep, N.G. and Ohta, H. (2009), “Superiority of exporters and the causality between exporting and firm characteristics in Vietnam”, Discussion Paper Series 239, Research Institute for Economics and Business Administration, Kobe University.
Huong, V.V., Holmes, M.J. and Lim, S. (2012), “Higher productivity in exporters: self-selection, learning by exporting or both? Evidence from Vietnamese manufacturing SMEs”, MPRA Paper 40708, University Library of Munich, Germany.
Kimura, F. and Kiyota, K. (2006), “Exports, FDI, and productivity: dynamic evidence from Japanese firms”, Review of World Economics, Vol. 14 No. 4, pp. 695 - 719.
Krugman, P.R., Obstfeld, M. and Melitz, M.J. (2011), International economics: theory and policy, 9th ed., Boston, MA: Addison-Wesley.
Kyburz, S. and Huong, Q.N. (2016), “Does proximity to foreign invested firms stimulate productivity growth of domestic firms? Firm-level evidence from Vietnam”, CRED Research Paper No. 16, Universitaet Bern.
Levinsohn, J. and Petrin, A. (2003), “Estimating production functions using inputs to control for unobservables”, Review of Economics Studies, Vol. 70, pp. 317 - 342.
Long, P.D. and Tam, N.C. (2018), “Relationship between exporting and productivity of the enterprises”, Ho Chi Minh City Open University Journal of Science, Vol. 13 No. 2, pp. 106 - 115.
Melitz, M.J. (2003), “The impact of trade on intra-industry reallocations and aggregate industry productivity”, Econometrica, Vol. 71, pp. 1695 - 1725.
OECD. (2000), Small and medium-sized enterprises: local, strength, global reach.
OECD. (2011), ISIC Rev. 3 Technology Intensity Definition.
Petrin, A., Poi, B.P. and Levinsohn, J. (2004), “Production function estimation in Stata using inputs to control for unobservables”, Stata Journal, Vol. 4 No. 2, pp. 113 - 123.
Robert, M.J. and Tybout, J.R. (1997), “The decision to export in Colombia: an empirical model of entry with sunk costs”, The American Economic Review, Vol. 87 No. 4, pp. 545 - 564.
Rosenbaum, P.R. and Rubin, D.B. (1983), “The central role of the propensity score in observational studies for causal effects”, Biometrika, Vol. 70 No. 1, pp. 41 - 55.
Ruane, F. and Sutherland, J. (2005), “Export performance and destination characteristics of Irish manufacturing industry”, Economics Working Papers, Vol. 141 No. 3, pp. 442 - 459.
The National Assembly Standing Committee. (2016), Resolution on urban classification.
Tra, P.T.T., Ngoc, H.T.N., Hoa, P.H. and Tran, N.M. (2014), “Does exporting spur firm productivity?: Evidence from Vietnam”, Journal of Southeast Asian Economies, Vol. 32 No. 1, pp. 84 - 105.
Van Biesebroeck, J. (2005), “Exporting raises productivity in sub-Saharan African manufacturing firms”, Journal of International Economics, Vol. 67 No. 2, pp. 373 - 391.
Wiemann, J., Effner, H., Grammling, S., Henke, K., Kommer, C. and Muhlich, L. (2006), “Vietnam - the 150th WTO-Member: implications for industrial policy and export promotion”, DIE Studies, No. 23, Bonn: Deutsches Institut für Entwicklungspolitik.
Yasar, M. and Rejesus, R.M. (2005), “Export status and firm performance: evidence from a matched sample”, Economics Letters, Vol. 88, pp. 397 - 402.
Alvarez, R. and Lopez, R. (2005), “Exporting and performance: evidence from Chilean plants”, Canadian Journal of Economics, Vol. 38, pp. 1384 - 1400.
Arnold, J.M. and Hussinger, K. (2005), “Export behavior and firm productivity in German manufacturing: a firm-level analysis”, Review of World Economics, Vol. 141, pp. 219 - 243.
Aw, B.Y., Chung, S. and Roberts, M.J. (2000), “Productivity and turnover in the export market: micro-level evidence from the Republic of Korea and Taiwan (China)”, The World Bank Economic Review, Vol. 14 No. 1, pp. 65 - 90.
Baldwin, J. and Gu, W. (2004), “Trade liberalization: export-market participation, productivity growth, and innovation”, Oxford Review of Economic Policy, Vol. 20 No. 3, pp. 372 - 392.
Bellone, F., Musso, P., Nesta, L. and Quere, M. (2006), “The U-shaped productivity dynamics of french exporters”, Document de travail, OFCE.
Bernard, A. and Jensen, J.B. (1999), “Exceptional exporter performance: cause, effect, or both?”, Journal of International Economics, Vol. 47 No. 1, pp. 1 - 25.
Bernard, A. and Jensen, J.B. (2003), “Why some firms export?”, Review of Economics and Statistics, Vol. 86 No. 2, pp. 561 - 569.
Bernard, A. and Wagner, J. (1997), “Exports and success in German manufacturing”, Review of World Economics, Vol. 133, pp. 134 - 157.
Bigsten, A., Collier, P., Dercon, S., Fafchamps, M., Gauthier, B., Gunning, J.W., Oduro, A., Oostendorp, R., Pattillo, C., Soderbom., M., Teal, F. and Zeufack, A. (2004), “Do African manufacturing firms learn from exporting”, The Journal of Development Studies, Vol. 40 No. 3, pp. 115 - 141.
Binh, L.D. and Phuong, T.T. (2021), SME sector and the EVFTA.
Blalock, G. and Gertler, P.J. (2004), “Learning from exporting revisited in a less developed setting”, Journal of Development Economics, Vol. 75 No. 2, pp. 397 - 416.
Cameron, A.C. and Trivedi, P.K. (2005), Microeconometrics: methods and applications, Cambridge University Press, New York.
Castellani, D. (2002), “Export behaviour and productivity growth: evidence from Italian manufacturing firms”, Weltwirtschaftliches Archiv, Vol. 138, pp. 605 - 628.
Clarke, S., Akbari, M. and Far, S.M. (2017), “Vietnam’s trade policy: a developing nation assessment”, International Journal of Community Development and Management Studies, Vol. 1, pp. 14 - 37.
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, Vol. 113, pp. 903 - 947.
De Loecker, J. (2007), “Do exports generate higher productivity? Evidence from Slovenia”, Journal of International Economics, Vol. 73 No. 1, pp. 69 - 98.
De Loecker, J. (2013), “Detecting learning by exporting”, American Economic Journal: Microeconomics, Vol. 5 No. 3, pp. 1 - 21.
Delgado, M.A., Farinas, J.C. and Ruano, S. (2002), “Firm productivity and export markets: a non-parametric approach”, Journal of International Economics, Vol. 57, pp. 397 - 422.
Fafchamps, M. and Gubert, F. (2007), “The formation of risk sharing networks”, Journal of Development Economics, Vol. 83 No. 2, pp. 326 - 350.
Farinas, J.C. and Martin-Marcos, A. (2007), “Exporting and economic performance: firm‐level evidence of Spanish manufacturing”, The World Economy, Vol. 30 No. 4, pp. 618 - 646.
Girma, S., Greenaway, D. and Kneller, R. (2004), “Does exporting increase productivity? A microeconometric analysis of matched firms”, Review of International Economics, Vol. 12 No. 5, pp. 855 - 866.
Google, Temasek, and Bain and Company. (2020), e-Conomy SEA report: At full velocity: Resilient and racing ahead.
Greenaway, D. and Yu, Z. (2004), “Firm level interactions between exporting productivity: industry specific evidence”, GEP Research Paper, Vol. 1.
Greenaway, D., Gullstrand, J. and Kneller, R. (2005), “Exporting may not always boost firm productivity”, Review of World Economics, Vol. 141 No. 4, pp. 561 - 582.
Greenaway, D. and Kneller, R. (2008), “Exporting, productivity and agglomeration”, European Economic Review, Vol. 52 No. 5, pp. 919 - 939.
GSO. (2021), “Xuat khau truc tuyen: co phai la cay dua than cua doanh nghiep?”, Available at https://www.gso.gov.vn/tin-tuc-khac/2020/12/xuat-khau-truc-tuyen-co-phai-la-cay-dua-than-cua-doanh-nghiep/ (Accessed 10 March, 2022).
Hai, C.T. (2019), “Development of small and medium-sized enterprises in Vietnam today”, Vietnam Social Sciences, Vietnam Academy of Social Sciences, Vol. 11, pp. 18 - 26.
Helpman, E. and Krugman, P. (1985), Market structure and foreign trade: increasing returns, imperfect competition, and the international economy, MIT Press, Cambridge.
Hiep, N.G. and Ohta, H. (2009), “Superiority of exporters and the causality between exporting and firm characteristics in Vietnam”, Discussion Paper Series 239, Research Institute for Economics and Business Administration, Kobe University.
Huong, V.V., Holmes, M.J. and Lim, S. (2012), “Higher productivity in exporters: self-selection, learning by exporting or both? Evidence from Vietnamese manufacturing SMEs”, MPRA Paper 40708, University Library of Munich, Germany.
Kimura, F. and Kiyota, K. (2006), “Exports, FDI, and productivity: dynamic evidence from Japanese firms”, Review of World Economics, Vol. 14 No. 4, pp. 695 - 719.
Krugman, P.R., Obstfeld, M. and Melitz, M.J. (2011), International economics: theory and policy, 9th ed., Boston, MA: Addison-Wesley.
Kyburz, S. and Huong, Q.N. (2016), “Does proximity to foreign invested firms stimulate productivity growth of domestic firms? Firm-level evidence from Vietnam”, CRED Research Paper No. 16, Universitaet Bern.
Levinsohn, J. and Petrin, A. (2003), “Estimating production functions using inputs to control for unobservables”, Review of Economics Studies, Vol. 70, pp. 317 - 342.
Long, P.D. and Tam, N.C. (2018), “Relationship between exporting and productivity of the enterprises”, Ho Chi Minh City Open University Journal of Science, Vol. 13 No. 2, pp. 106 - 115.
Melitz, M.J. (2003), “The impact of trade on intra-industry reallocations and aggregate industry productivity”, Econometrica, Vol. 71, pp. 1695 - 1725.
OECD. (2000), Small and medium-sized enterprises: local, strength, global reach.
OECD. (2011), ISIC Rev. 3 Technology Intensity Definition.
Petrin, A., Poi, B.P. and Levinsohn, J. (2004), “Production function estimation in Stata using inputs to control for unobservables”, Stata Journal, Vol. 4 No. 2, pp. 113 - 123.
Robert, M.J. and Tybout, J.R. (1997), “The decision to export in Colombia: an empirical model of entry with sunk costs”, The American Economic Review, Vol. 87 No. 4, pp. 545 - 564.
Rosenbaum, P.R. and Rubin, D.B. (1983), “The central role of the propensity score in observational studies for causal effects”, Biometrika, Vol. 70 No. 1, pp. 41 - 55.
Ruane, F. and Sutherland, J. (2005), “Export performance and destination characteristics of Irish manufacturing industry”, Economics Working Papers, Vol. 141 No. 3, pp. 442 - 459.
The National Assembly Standing Committee. (2016), Resolution on urban classification.
Tra, P.T.T., Ngoc, H.T.N., Hoa, P.H. and Tran, N.M. (2014), “Does exporting spur firm productivity?: Evidence from Vietnam”, Journal of Southeast Asian Economies, Vol. 32 No. 1, pp. 84 - 105.
Van Biesebroeck, J. (2005), “Exporting raises productivity in sub-Saharan African manufacturing firms”, Journal of International Economics, Vol. 67 No. 2, pp. 373 - 391.
Wiemann, J., Effner, H., Grammling, S., Henke, K., Kommer, C. and Muhlich, L. (2006), “Vietnam - the 150th WTO-Member: implications for industrial policy and export promotion”, DIE Studies, No. 23, Bonn: Deutsches Institut für Entwicklungspolitik.
Yasar, M. and Rejesus, R.M. (2005), “Export status and firm performance: evidence from a matched sample”, Economics Letters, Vol. 88, pp. 397 - 402.