Firm‐Level Evidence on Productivity Differentials and Turnover in Vietnamese Manufacturing

25 Pages Posted: 6 May 2014

See all articles by Doan Thi Thanh Ha

Doan Thi Thanh Ha

Yokohama National University

Kozo Kiyota

Keio University - Keio Economic Observatory

Date Written: June 2014

Abstract

This paper examines the relationship between productivity differentials and firm turnover in Vietnamese manufacturing. We utilize firm‐level data between 2000 and 2009, including the year 2007, when Vietnam joined the World Trade Organization. Our major findings are twofold. First, the productivity of entrants, survivors and exiters increased simultaneously from 2006 to 2007. This result suggests that the cut‐off productivity level increased after trade liberalization. Second, the resource reallocation between firms was facilitated after the liberalization. These findings are consistent with the implications of the recent models of international trade and firm heterogeneity.

JEL Classification: O12, D22, O47, F14

Suggested Citation

Ha, Doan Thi Thanh and Kiyota, Kozo, Firm‐Level Evidence on Productivity Differentials and Turnover in Vietnamese Manufacturing (June 2014). Japanese Economic Review, Vol. 65, Issue 2, pp. 193-217, 2014. Available at SSRN: https://ssrn.com/abstract=2433316 or http://dx.doi.org/10.1111/jere.12032

Doan Thi Thanh Ha (Contact Author)

Yokohama National University

Tokiwadai, Hodogaya-Ku, Yokohama
Yokohama
Japan

Kozo Kiyota

Keio University - Keio Economic Observatory ( email )

Mita 2-15-45, Minato-ku
Tokyo, 108-8345
Japan

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