Firm exporting and employee benefits: first evidence from Vietnam manufacturing SMEs

This study examines linkages between the export participation of firms and employee benefits in terms of wages and employment quality. Based on a uniquely matched firmworker panel dataset for 2007 and 2009, we find evidence that export participation by firms in Vietnam has a positive impact on wages when taking into account firm characteristics alone. However, the exporter wage premium falls when both firm and worker characteristics are controlled for, and it decreases further when controlling for time-invariant unobservable factors by spell fixed effect estimation. While there are many studies on the export wage premium, the role of export participation on the quality of employment remains largely unexplored. By using a firm-level balanced panel dataset for the same period, our results suggest that export participation has a negative effect on employment quality. Nevertheless, the impact of export participation on both wages and employment quality vary greatly with respect to levels of technology

Does export participation affect wages and employment quality? the case of Vietnamese SMEs

Based on a unique matched firm-worker panel dataset between 2007 and 2009, empirical results show that export participation has a positive impact on wages when taking account of firm characteristics alone. However, exporter wage premium completely vanishes when both firm and worker characteristics are added simultaneously. This finding is also confirmed when controlling for time-invariant unobservable factors by spell fixed effect estimations. Furthermore, using a firm level balanced panel dataset in the same periods, the hypothesis of the positive role of export status on employment quality is rejected when it has a positive effect on the share of casual workers. However, this result is not robust across sectors and locations. Export participation continues to yield a positive impact on the share of casual worker in low tech sectors. However, a negative effect on employment quality is observed in high tech industries. The findings suggest that policies encouraging and supporting exporting should not only focus on the amount of employment created but also on the quality of employment, especially for low technology industries

Higher productivity in Exporters: self-selection, learning by exporting or both? Evidence from Vietnamese manufacturing SMEs

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

Does export participation affect wages and employment quality? the case of Vietnamese SMEs

Based on a unique matched firm-worker panel dataset between 2007 and 2009, empirical results show that export participation has a positive impact on wages when taking account of firm characteristics alone. However, exporter wage premium completely vanishes when both firm and worker characteristics are added simultaneously. This finding is also confirmed when controlling for time-invariant unobservable factors by spell fixed effect estimations. Furthermore, using a firm level balanced panel dataset in the same periods, the hypothesis of the positive role of export status on employment quality is rejected when it has a positive effect on the share of casual workers. However, this result is not robust across sectors and locations. Export participation continues to yield a positive impact on the share of casual worker in low tech sectors. However, a negative effect on employment quality is observed in high tech industries. The findings suggest that policies encouraging and supporting exporting should not only focus on the amount of employment created but also on the quality of employment, especially for low technology industries

The lasting effects of innovation on firm profitability: Panel evidence from a transitional economy

This study is the first to study the lasting effects of innovation on firm profitability in Vietnam. Using a unique panel dataset for the period 2005-2015, our results show that innovators achieve higher profit in comparison with non-innovating firms. The positive effects of innovation on firm profitability are observed not only in the short term but also in the longer term. The benefits of innovation for firm profitability can be seen in higher export probability, better productivity, better access to formal credit, and the ability to secure government support, but only after innovation

The impact of government support on firm performance in Vietnam. New evidence from a dynamic approach

Using a sample of private manufacturing small- and medium-sized enterprises (SMEs) in the period 2007\u20132015, this paper examines the effect of government support on firms\u2019 financial performance in Vietnam. Contrary to many previous studies, the study finds that government assistance affects firms\u2019 financial performance after controlling for heterogeneity, unobservable factors, and dynamic endogeneity. The finding supports the viewpoint of institutional theory. The study also reveals that assistance measures, such as tax exemptions, soft loans, and investment incentives to promote financial performance, are vital for the development of Vietnamese private SMEs