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Productivity growth and job reallocation: Evidence from the garment industry in Vietnam

Author

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  • Thanh Tam Nguyen-Huu

    (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie)

  • Khac Minh Nguyen
  • Mai Lan Phung

Abstract

The paper investigates the aggregate productivity decomposition in the garment industry of Vietnam between 2000 and 2016. According to the Olley-Pack decomposition, there is an improvement in aggregate productivity because garment firms become more productive and there is some job reallocation from less to more productive firms. Meanwhile, the dynamic decomposition indicates that aggregate productivity growth is mainly driven by the dynamic entry-exit flow of firms. When firm ownership is considered, the productivity growth of private firms is principally conducted by their dynamic entry-exit flow, and to a lesser extent, by the productivity improvement of survivor firms. Differently, the dynamic entry-exit flow is the sole factor leading to the productivity growth of stateown-enterprises and foreign firms.

Suggested Citation

  • Thanh Tam Nguyen-Huu & Khac Minh Nguyen & Mai Lan Phung, 2020. "Productivity growth and job reallocation: Evidence from the garment industry in Vietnam," Post-Print hal-04248216, HAL.
    • Handle: RePEc:hal:journl:hal-04248216
    Note: View the original document on HAL open archive server: https://hal.science/hal-04248216
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    References listed on IDEAS

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    4. Hege M. Knutsen, 2004. "Industrial development in buyer-driven networks: the garment industry in Vietnam and Sri Lanka," Journal of Economic Geography, Oxford University Press, vol. 4(5), pages 545-564, November.
    5. Allan Collard-Wexler & Jan De Loecker, 2015. "Reallocation and Technology: Evidence from the US Steel Industry," American Economic Review, American Economic Association, vol. 105(1), pages 131-171, January.
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    More about this item

    Keywords

    JEL Classification D24; O10 Productivity decomposition Job reallocation Productivity improvement Entry-exit flow Vietnam;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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