Type | Journal Article - The Journal of International Trade & Economic Development |
Title | Does rising import competition harm local firm productivity in less advanced economies? Evidence from the Vietnam's manufacturing sector |
Author(s) | |
Volume | 25 |
Issue | 1 |
Publication (Day/Month/Year) | 2016 |
Page numbers | 23-46 |
URL | http://econpapers.repec.org/article/tafjitecd/v_3a25_3ay_3a2016_3ai_3a1_3ap_3a23-46.htm |
Abstract | This paper examines whether rising import penetration has an effect on the productivity of domestic firms. The study uses data on a 10-year unbalanced panel of firms in the manufacturing sector in Vietnam from 2000 to 2009. Panel and instrumental variable methods are used to control for firm heterogeneity and endogeneity of import penetration. We find significantly negative effects of import competition on local firms’ productivity. Further investigation on the basis of firm size and industry technology levels shows that SMEs are more adversely affected, but that industry technology level does not matter. |
» | Vietnam - Enterprise Survey 2009 |