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Is digital transformation a barrier to export reduction during COVID-19? The case of a developing country

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  • Nguyen Cam Thuy
  • Luong Van Dat
  • Do Phu Dong
  • Vu Thuy Linh
  • Doan Ngoc Thang

Abstract

This paper investigates the impact of digital transformation on export reduction during COVID-19 by using unique data from Vietnamese manufacturing firms. Digital transformation reflects whether firms had already introduced digital technology before the COVID-19 outbreak or started using digital technology during the COVID-19 outbreak. Meanwhile, an export reduction is a partial de-internationalization in which firms decrease overseas sales. Estimation results from the instrumental variable probit method show that digital transformation has a negative effect on the probability of export reduction. This effect becomes particularly strong for micro, small and medium enterprises. Our findings have managerial implications for firm managers.

Suggested Citation

  • Nguyen Cam Thuy & Luong Van Dat & Do Phu Dong & Vu Thuy Linh & Doan Ngoc Thang, 2023. "Is digital transformation a barrier to export reduction during COVID-19? The case of a developing country," Cogent Business & Management, Taylor & Francis Journals, vol. 10(2), pages 2211218-221, December.
    • Handle: RePEc:taf:oabmxx:v:10:y:2023:i:2:p:2211218
    DOI: 10.1080/23311975.2023.2211218
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