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Productivity analysis for Vietnam’s textile and garment industry

Author

Listed:
  • Nguyen Thang

    (Centre for Analysis and Forecasting, Vietnam Academy of Social Sciences, Hanoi, Vietnam)

  • To Trung Thanh

    (Department of Economics, National Economics University, Hanoi, Vietnam)

  • Vu Hoang Dat

    (Centre for Analysis and Forecasting, Vietnam Academy of Social Sciences, Hanoi, Vietnam)

Abstract

The study uses firm-level panel data to study the technical efficiency performance of Vietnam’s textile and garment firms in the period 1997-2000, as well as its determinants. The model used is that of Battese and Coelli [1995]. The average estimated technical efficiency of the two subsectors is relatively high. In the textile subsector, medium-old, South-based, private, export-oriented, and highly equipped firms are found to be more technically efficient than those with differing characteristics. In the garment subsector, large or old-medium, south-based, and high external capital firms have higher technical efficiency. Meanwhile, small, old, and highly equipped firms have lower technical efficiency than firms with other characteristics. The total factor productivity (TFP) picture of the textile subsector is mixed, whereas the TFP growth of the garment subsector is positive, although this growth decreases.

Suggested Citation

  • Nguyen Thang & To Trung Thanh & Vu Hoang Dat, 2006. "Productivity analysis for Vietnam’s textile and garment industry," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 43(1), pages 131-166, June.
    • Handle: RePEc:phs:prejrn:v:43:y:2006:i:1:p:131-166
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    File URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/241/622
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    Citations

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    Cited by:

    1. Le, Viet & Vu, Xuan-Binh (Benjamin) & Nghiem, Son, 2018. "Technical efficiency of small and medium manufacturing firms in Vietnam: A stochastic meta-frontier analysis," Economic Analysis and Policy, Elsevier, vol. 59(C), pages 84-91.

    More about this item

    Keywords

    technical efficiency; total factor productivity; Vietnam’s textile and garment;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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