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The Role of Entry Costs and He terogeneous Characteristics of Firms in the Decision to Export: Empirical Evidence from Firm-level Data in Vietnam

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  • Nguyen HIEP
  • Hiroshi OHTA

Abstract

This paper contributes to the examination of factors that affect the decision to export of firms. Using a panel of firm-level data in Vietnam's manufacturing sector, we test for the role of sunk costs and heterogeneous characteristics of firms in determining firms' probability of exporting. Under a framework that controls for unobserved heterogeneity among firms, we find that the sunk entry costs are important factor that makes export status highly persistent in Vietnam. Firm size, firm age and foreign ownership are positively related to export probability of firms, while total factor productivity has no statistically significant effect. Besides, firms with labor-intensive technology, more skilled labors or competitive labor service are more likely to export.

Suggested Citation

  • Nguyen HIEP & Hiroshi OHTA, 2007. "The Role of Entry Costs and He terogeneous Characteristics of Firms in the Decision to Export: Empirical Evidence from Firm-level Data in Vietnam," GSICS Working Paper Series 17, Graduate School of International Cooperation Studies, Kobe University.
    • Handle: RePEc:kcs:wpaper:17
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    File URL: http://www.research.kobe-u.ac.jp/gsics-publication/gwps/2007-17.pdf
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    Cited by:

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    2. Ansgar Belke & Dominik Kronen, 2016. "Exchange rate bands of inaction and play-hysteresis in Greek exports to the Euro Area, the US and Turkey: sectoral evidence," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 43(2), pages 349-390, May.
    3. Mai T.P. Vu & Flora Bellone & Marion Dovis, 2018. "Productivity and wage premiums: Evidence from Vietnamese ordinary and processing exporters," International Economics, CEPII research center, issue 154, pages 48-67.
    4. Mai Anh NGO, 2015. "Exporting and Firm-Level Credit Constraints-Evidence from Ghana," Working Papers DP-2015-27, Economic Research Institute for ASEAN and East Asia (ERIA).

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