Vu, Van Huong (2012): Higher productivity in Exporters: self-selection, learning by exporting or both? Evidence from Vietnamese manufacturing SMEs.
Download (587kB) | Preview
This study examines whether high productivity is either the cause or a consequence of a business’s decision to export. Using a balanced panel dataset from 2005-2009 for Vietnamese manufacturing private SMEs, our empirical results find strongly statistical evidence for the self-selection of more productive firms into the export market. The alternative hypothesis, learning by exporting, was shown to be invalid through employing fixed effect panel data estimation, and fixed effect Instrumental Variable regression. By going beyond the previous literature, this study also reveals that export participation has a statistically insignificant impact on technical efficiency, technical progress, and scale change. Last but not least, improvement in innovative capacity and network with foreign customers is also important determinants in boosting the export participation of private enterprises.
|Item Type:||MPRA Paper|
|Original Title:||Higher productivity in Exporters: self-selection, learning by exporting or both? Evidence from Vietnamese manufacturing SMEs|
|English Title:||Higher productivity in exporters: self-selection, learning by exporting or both? Evidence from Vietnamese manufacturing SMEs|
|Keywords:||Productivity, self-selection, learning by exporting or both|
|Subjects:||F - International Economics > F0 - General|
|Depositing User:||Vu Van Huong|
|Date Deposited:||17. Aug 2012 09:22|
|Last Modified:||21. Aug 2015 21:00|
Alvarez, R., & López, R. A. (2005). Exporting and performance: evidence from Chilean plants. Canadian Journal of Economics/Revue Canadienne D'économique, 38(4), 1384-1400.
Angrist, J. D., & Pischke, J. S. (2008). Mostly harmless econometrics: An empiricist's companion. Princeton, NJ: Princeton University Press.
Anh, N. T. T., Hong, V. X. N., Thang, T. T., & Hai, N. M. (2006). The impacts of foreign direct investment on economic growth in Vietnam. Hanoi, VietNam: Central Institute for Economic Management.
Aw, B. Y., Roberts, M. J., & Winston, T. (2007). Export market participation, investments in R&D and worker training, and the evolution of firm productivity. The World Economy, 30(1), 83-104.
Baldwin, J. R., & Gu, W. (2003). Export-market participation and productivity performance in Canadian manufacturing. Canadian Journal of Economics/Revue Canadienne D'économique, 36(3), 634-657.
Bascle, G. (2008). Controlling for endogeneity with instrumental variables in strategic management research. Strategic Organization, 6(3), 285-327.
Baum, C. F., Schaffer, M. E., & Stillman, S. (2003). Instrumental variables and GMM: Estimation and testing. Stata Journal, 3(1), 1-31.
Bellone, F., Musso, P., Nesta, L., & Quere, M. (2008). The u-shaped productivity dynamics of French exporters. Review of World Economics, 144(4), 636-659.
Bernard, A., & Wagner, J. (1997). Exports and success in German manufacturing. Review of World Economics, 133(1), 134-157.
Bernard, A., & Wagner, J. (2001). Export entry and exit by German firms. Review of World Economics, 137(1), 105-123.
Bernard, A. B., & Jensen, J. B. (1995). Exporters, jobs, and wages in US manufacturing: 1976-1987. Brookings Papers on Economic Activity. Microeconomics, 1995, 67-119.
Bernard, A. B., & Jensen, J. B. (1999). Exceptional exporter performance: cause, effect, or both? Journal of International Economics, 47(1), 1-25.
Bernard, A. B., & Jensen, J. B. (2004a). Exporting and productivity in the USA. Oxford Review of Economic Policy, 20(3), 343-357. doi:10.1093/oxrep/grh020
Bernard, A. B., & Jensen, J. B. (2004b). Why some firms export. Review of Economics and Statistics, 86(2), 561-569.
Bigsten, A., Collier, P., Dercon, S., Fafchamps, M., Gauthier, B., Gunning, J. W., et al. (2004). Do African manufacturing firms learn from exporting? Journal of Development Studies, 40(3), 115-141.
Bigsten, A., & Gebreeyesus, M. (2009). Firm productivity and exports: Evidence from Ethiopian manufacturing. The Journal of Development Studies, 45(10), 1594-1614.
Blalock, G., & Gertler, P. J. (2004). Learning from exporting revisited in a less developed setting. Journal of Development Economics, 75(2), 397-416.
Cameron, A. C., & Trivedi, P. K. (2009). Microeconometrics using stata (Vol. 5). College Station, TX: Stata Press
Clerides, S. K., Lach, S., & Tybout, J. R. (1998). Is learning by exporting important? Micro-dynamic evidence from Colombia, Mexico, and Morocco. The Quarterly Journal of Economics, 113(3), 903-947. doi:10.1162/003355398555784
Coelli, T. (2005). An introduction to efficiency and productivity analysis. New York, NY: Springer Verlag.
Crespi, G., Criscuolo, C., & Haskel, J. (2008). Productivity, exporting, and the learning-by-exporting hypothesis: direct evidence from UK firms. Canadian Journal of Economics, 41(2), 619-638.
Fryges, H., & Wagner, J. (2010). Exports and profitability: First evidence for German manufacturing firms. The World Economy, 33(3), 399-423.
Fu, X. (2005). Exports, technical progress and productivity growth in a transition economy: A non-parametric approach for China. Applied Economics, 37(7), 725-739.
Girma, S., Greenaway, A., & Kneller, R. (2004). Does exporting increase productivity? A microeconometric analysis of matched firms. Review of International Economics, 12(5), 855-866.
Girma, S., Greenaway, D., & Kneller, R. (2003). Export market exit and performance dynamics: A causality analysis of matched firms. Economics Letters, 80(2), 181-187.
Greenaway, D., Gullstrand, J., & Kneller, R. (2005). Exporting may not always boost firm productivity. Review of World Economics, 141(4), 561-582.
Greenaway, D., & Kneller, R. (2007). Industry differences in the effect of export market entry: Learning by exporting? Review of World Economics, 143(3), 416-432.
Greenaway, D., & Yu, Z. (2004). Firm-level interactions between exporting and productivity: Industry-specific evidence. Review of World Economics, 140(3), 376-392.
Hansen, H., Rand, J., & Tarp, F. (2009). Enterprise growth and survival in Vietnam: Does government support matter? The Journal of Development Studies, 45(7), 1048-1069.
Harvie, C., & Lee, B. C. (2008). Small and medium sized enterprises in East Asia: Sectoral and regional dimensions. Cheltenham, England: Edward Elgar Publishing.
Hiep, N., & Ohta, H. (2009). Superiority of exporters and the causality between exporting and firm characteristics in Vietnam (Working paper no. 239). Retrieved from http://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/dp239.pdf
Huang, C., Zhang, M., Zhao, Y., & Varum, C. A. (2008). Determinants of exports in China: A microeconometric analysis. The European Journal of Development Research, 20(2), 299-317.
Isgut, A. (2001). What's different about exporters? Evidence from Colombian manufacturing. Journal of Development Studies, 37(5), 57-82.
Kim, S. I., Gopinath, M., & Kim, H. (2009). High productivity before or after exports? An empirical analysis of Korean manufacturing firms. Journal of Asian Economics, 20(4), 410-418.
Kimura, F., & Kiyota, K. (2006). Exports, FDI, and productivity: Dynamic evidence from Japanese firms. Review of World Economics, 142(4), 695-719.
Kokko, A., & Sjoholm, F. (2000). Some alternative scenarios for the role of the state in Vietnam. The Pacific Review, 13(2), 257-277.
Kokko, A., & Sjöholm, F. (2005). The Internationalization of Vietnamese Small and Medium-Sized Enterprises. Asian Economic Papers, 4(1), 152-177. doi:10.1162/asep.2005.4.1.152
Kraay, A. (1999). Exports and economic performance: evidence from a panel of Chinese enterprises. Revue d'Economie du Developpement, 1(2), 183-207.
Kumbhakar, S. C., & Lovell, C. A. K. (2003). Stochastic frontier analysis: Cambridge Univ Pr.
Le, V., & Harvie, C. (2010). Firm performance in Vietnam: Evidence from manufacturing small and medium enterprises (Working paper 10-04). Wollongong, NSW, Australia: University of Wollongong. Retrieved from http://www.uow.edu.au/content/groups/public/@web/@commerce/@econ/documents/doc/uow090518.pdf
Lileeva, A., & Trefler, D. (2010). Improved access to foreign markets raises plant-level productivity for some plants. The Quarterly Journal of Economics, 125(3), 1051-1099. doi:10.1162/qjec.2010.125.3.1051
Liu, J.-T., Tsou, M.-W., & Hammitt, J. (1999). Export activity and productivity: Evidence from the Taiwan electronics industry. Review of World Economics, 135(4), 675-691. doi:10.1007/bf02707390
Ministry of Industry and Trade of Vietnam, [MITV], & United Nations Industrial Development Organisation, [UNIDO]. (2011). Vietnam industrial competitiveness report. Retrieved from http://institute.unido.org/documents/M8_LearningResources/VICR_2011_executivesummary.pdf
Nguyen, A. N., Pham, N. Q., Nguyen, C. D., & Nguyen, N. D. (2008). Innovation and exports in Vietnam's SME sector. The European Journal of Development Research, 20(2), 262-280.
Nguyen, M. K. (2005). Anh huong cua tien bo cong nghe den tang truong cua cac nganh san xuat [The impact of technical progress on growth of manufacturing sectors]. In M. K. Nguyen (Ed.), Anh huong cua tien bo cong nghe den tang truong kinh te [The impact of technical progress on economic growth] (pp. 60-96). Hanoi, VietNam: Science and Technology Publishing House.
Ohno, K. (2011). Comment on “Revisiting Exports and Foreign Direct Investment in Vietnam”. Asian Economic Policy Review, 6(1), 134-135.
Park, A., Yang, D., Shi, X., & Jiang, Y. (2010). Exporting and firm performance: Chinese exporters and the Asian financial crisis. The Review of Economics and Statistics, 92(4), 822-842.
Pham, H. T., Dao, T. L., & Reilly, B. (2010). Technical efficiency in the Vietnamese manufacturing sector. Journal of International Development, 22(4), 503-520.
Poddar, T. (2004, September 9-11). Understanding Indias export dynamism of the 1990s. Paper presented at the European Trade Study Conference, Nottingham, England. Retrieved from http://www.etsg.org/ETSG2004/Papers/Poddar.PDF
Rand, J., & Tarp, F. (2009). Characteristics of the Vietnamese business environment: Evidence from a SME survey in 2008. Hanoi, VietNam: CIEM.
Ranjan, P., & Raychaudhuri, J. (2011). Self-selection vs learning: Evidence from Indian exporting firms. Indian Growth and Development Review, 4(1), 22-37.
Roberts, B. Y., Chen, X., & Roberts, M. J. (1997). Firm-level evidence on productivity differentials, turnover, and exports in Taiwanese manufacturing (Working paper series). Retrieved from http://ssrn.com/paper=136950http://papers.ssrn.com/sol3/papers.cfm?abstract_id=136950
Roberts, M. J., & Tybout, J. R. (1997). The decision to export in Colombia: An empirical model of entry with sunk costs. The American Economic Review, 87(4), 545-564.
Roper, S., Love, J. H., & Hagon, D. A. (2006). The determinants of export performance: Evidence for manufacturing plants in Ireland and Northern Ireland. Scottish Journal of Political Economy, 53(5), 586-615.
Sharma, C., & Mishra, R. K. (2011). Does export and productivity growth linkage exist? Evidence from the Indian manufacturing industry. International Review of Applied Economics, 25(6), 1-20.
Sharma, S. C., Sylwester, K., & Margono, H. (2007). Decomposition of total factor productivity growth in US states. The Quarterly Review of Economics and Finance, 47(2), 215-241.
Sinani, E., & Hobdari, B. (2010). Export market participation with sunk costs and firm heterogeneity. Applied Economics, 42(25), 3195-3207.
Stampini, M., & Davis, B. (2009). Does nonagricultural labor relax farmers’ credit constraints? Evidence from longitudinal data for Vietnam. Agricultural economics, 40(2), 177-188.
Stewart, M. B. (2006). Maximum simulated likelihood estimation of random-effects dynamic probit models with autocorrelated errors. Stata Journal, 6(2), 256-272.
Sun, X., & Hong, J. (2011). Exports, ownership and firm productivity: Evidence from China. The World Economy, 34(7), 1199-1215.
Tomiura, E. (2007). Effects of R&D and networking on the export decision of Japanese firms. Research Policy, 36(5), 758-767.
Tran, V. T. (2011). Comment on “Revisiting Exports and Foreign Direct Investment in Vietnam”. Asian Economic Policy Review, 6(1), 132-133.
Trung, T. Q., Tung, N. T., Dong, T. D., & Duong, P. H. (2009). Performance of export-oriented small and medium-sized manufacturing enterprises in Viet Nam. Asia-Pacific Trade and Investment Review 2008, 4, 83.
Tsou, M.-W., Liu, J.-T., Hammitt, J. K., & Wang, K.-H. (2008). Exporting and producitivity growth: Evidence from the Taiwan electronics plants. Scottish Journal of Political Economy, 55(2), 190-209.
Van Biesebroeck, J. (2005). Exporting raises productivity in sub-Saharan African manufacturing firms. Journal of International Economics, 67(2), 373-391.
Wagner, J. (2001). A note on the firm size – Export relationship. Small Business Economics, 17(4), 229-237. doi:10.1023/a:1012202405889
Wagner, J. (2002). The causal effects of exports on firm size and labor productivity: First evidence from a matching approach. Economics Letters, 77(2), 287-292.
Wagner, J. (2011). Exports, imports and profitability: First evidence for manufacturing enterprises. Open Economies Review, 1-19.
Wooldridge, J. M. (2002). Econometric analysis of cross section and panel data. Cambridge, MA: The MIT press.
Wooldridge, J. M. (2009). Introductory econometrics: A modern approach. Mason, OH: South Western, Cengage Learning.