Original scientific paper

https://doi.org/10.1080/1331677X.2017.1392883

Does rising import competition harm Vietnam’s local firm employment of the 2000s?

Truc Le Nguyen ; University of Economics and Business, Vietnam National University, Hanoi, Vietnam
Huong Vu Van ; Department of Economics, Academy of Finance, Hanoi, Vietnam
Lam Duc Nguyen ; University of Economics and Business, Vietnam National University, Hanoi, Vietnam
Tuyen Quang Tran orcid.org/0000-0002-0221-1480 ; University of Economics and Business, Vietnam National University, Hanoi, Vietnam

Abstract

This study considers for the first time the role of rising import
competition on employment in Vietnam. Using a time differenced
and instrumental variables approach, our study shows that import
competition results in employment contraction. Firms operating
in industries that face greater import competition have reduced
employment. We also find strong evidence of a negative impact of
import competition for small and very small firms, as well as in the
period before Vietnam’s World Trade Organization (WTO) accession.
Our results also reveal that previous studies at the industry-level
can provide biased estimates because of not controlling for the
heterogeneity of firm characteristics.

Keywords

Import competition; employment; economic security; firms; Vietnam

Hrčak ID:

193292

URI

https://hrcak.srce.hr/193292

Publication date:

1.12.2017.

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