Abstract
Labor productivity gap between export and non-exporting firms in industrialization: The case of the Vietnamese manufacturing sector
Highlights
This paper examines the labor productivity gap between exporting and non-exporting Vietnamese manufacturing firms in industrialization during the period from 2010 to 2016 using enterprise-level panel data drawn from Vietnamese Annual Enterprise Censuses
Productivity growth of industries is a key driver of long-term economic growth, and plays a core pillar in industrialization (Acemoglu & Zilibotti, 2001; Diewert, 2014; El-hadj & Brada, 2009; Barro & Sala-i-Martin, 1995)
Our results show that the labor productivity gap is almost come from the endowment
Summary
Productivity growth of industries is a key driver of long-term economic growth, and plays a core pillar in industrialization (Acemoglu & Zilibotti, 2001; Diewert, 2014; El-hadj & Brada, 2009; Barro & Sala-i-Martin, 1995). The relative contribution of the manufacturing sector to the national economy is significant and has increased over time (Ngo & Tran, 2020). The manufacturing sector is further estimated to currently employ 15 percent of Vietnam’s labor force and expected to create millions of jobs in Vietnam over the decade. It is expected to contribute to structural transformation and industrialization. Vietnam has observed a great increase in export volumes and in growth rate as well during recent industrialization. Export firms do play a vital role in stimulating economic growth, employment creation and increase in technology level
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