Impact of trade liberalisation on technical efficiency of Vietnamese manufacturing firms

Son Ngoc Chu, Kaliappa Kalirajan

    Research output: Contribution to journalArticlepeer-review

    17 Citations (Scopus)

    Abstract

    This study has examined whether trade liberalisation facilitated manufacturing firms in Vietnam to realise their production potentials fully using firm-level balanced panel data over the period 2000-03. The findings support the theoretical implications of the positive and robust impact of trade liberalisation on firm performance. The study reveals that while more trade liberalisation is conducive to better firm performance, increasing the share of skilled labour is the key for firms to achieve higher potential output in the long-run rather than using more unskilled labour, which is relatively more abundant in Vietnam. The policy implication is that more attention should be paid by policymakers to provide incentives and support for firms to facilitate upgrading the skills of their workers through different means such as on-the-job training.

    Original languageEnglish
    Pages (from-to)265-284
    Number of pages20
    JournalScience, Technology and Society
    Volume16
    Issue number3
    DOIs
    Publication statusPublished - Nov 2011

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