Multi-product Firms, Tariff Liberalisation, and Product Churning in Vietnamese Manufacturing
Doan, Ha Thi Thanh | February 2019
Abstract
Utilising 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 Liberalisation, and Product Churning in Vietnamese Manufacturing. © Economic Research Institute for ASEAN and East Asia. http://hdl.handle.net/11540/9797.Keywords
Regionalism
Regional Economy
Regional Trading Arrangements
Regional Trade Integration
Regional Economic Integration
Regional Cooperation
Interregional Cooperation
Trade Disputes
Trade Barriers
Free Trade
Trade
Trade Agreements
Intraregional Trade
Government Policy
Regional Organization
Regional Plans
Economic integration
Regional Development Bank
Preferential tariffs
International negotiation
Protectionist measures
Access to markets
Economic agreements
International trade law
Regional integration
Trade relations
Exports
Economic integration
Distribution
Economic integration
Development Bank
Trade policy
Small Business
Regional economics
Regional planning
Regional disparities
Interregionalism
Regional economic disparities
Regional economic blocs
Industrial arbitration
Euro
Inflation
Business
Finance
Free trade
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Citable URI
http://hdl.handle.net/11540/9797Metadata
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