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    Multi-Product Firms, Tariff Liberalization, and Product Churning in Vietnamese Manufacturing

    Doan, Ha Thi Thanh | January 2019
    Abstract
    Utilizing firm-level data covering the 2010–2015 period, this study documents the frequency and characteristics of multi-product firms in Vietnamese manufacturing. Our major findings are as follows. First, multi-product firms are larger, more capital-intensive, more productive, and are more likely to export. Second, multi-product firms are active in the market. Approximately 60% of firms adjust their product scope within a 6-year period. Third, the contribution of firms’ product extensive margin to aggregate output growth is limited due to the prevalence of product dropping, which offsets the positive impact of product adding. Most output growth during the period is thus generated by the intensive margin. Turning to the link between tariff reduction and product shedding, we do not detect any significant impact. However, we find that exporters play an important role in product adding, which suggests that they may contribute to aggregate growth through the channeling of product scope expansion. Contrary to our expectations, our analysis offers limited support for the heterogeneity of product turnover across ownership types. While we find that state-owned enterprises are more likely to spread economic activities across products and industries, there is little difference in terms of product churning amongst foreign direct investment, state-owned enterprises, and the domestic private sector.
    Citation
    Doan, Ha Thi Thanh. 2019. Multi-Product Firms, Tariff Liberalization, and Product Churning in Vietnamese Manufacturing. © Asian Development Bank Institute. http://hdl.handle.net/11540/9622.
    Keywords
    Development
    Trade
    Development Goals
    Skills Development
    Sustainable Development
    Trade Flows
    Trade And Development
    Food Security And Trade
    Trade Volume
    Trade Potential
    Trade Flows
    External Trade
    Industrial policy
    New technology
    Innovations
    Industry
    Export policy
    Import policy
    Trade Unions
    Natural Resources
    Services Trade
    SMEs
    Development assistance
    ADB
    Curriculum development
    Development assistance
    Development aid
    Development indicators
    Development potential
    Development models
    Project appraisal
    Performance appraisal
    Regional development bank
    Trade development
    Import volume
    Export volume
    Service industry
    Capital
    Business
    Communication in rural development
    Social participation
    Occupational training
    Partnership
    Joint venture
    System analysis
    Labor and globalization
    Labor policy
    Regional trading blocs
    Foreign trade and employment
    Developing countries
    Industrial priorities
    Technological innovation
    Technology transfer
    Foreign trade regulation
    Industrial relations
    Trade-unions
    Small business
    Show allCollapse
    Citable URI
    http://hdl.handle.net/11540/9622
    Metadata
    Show full item record
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    adbi-wp918.pdf (486.2Kb)
    Author
    Doan, Ha Thi Thanh
    Theme
    Development
    Trade

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    Copyright 2016-2021 Asian Development Bank Institute, except as explicitly marked otherwise