Huong Van Vu

Exports and profitability: a note from quantile regression approach

Studies of the linkage between exports and profitability often use mean regression approaches and focus only on European countries. Using a panel data quantile regression approach, this study analyses the linkage between export behaviour and profit growth in Vietnam. Using a panel dataset from 2005 to 2009, our results show an insignificant linkage between export status and firm profit growth when using OLS. However, when using a quantile approach, export participation is found to be positively related to profitability for those firms with high profit growth but negatively related for those firms with low profit growth. This might suggest that the productivity advantages of exporters with low profit growth are absorbed by costs relating to trading activities in overseas markets.

A note on poverty among ethnic minorities in the Northwest region of Vietnam

This article is the first to investigate both community and household determinants of poverty among ethnic minorities in the Northwest region of Vietnam. Results of a fractional logit and a logit model show that fixed assets, education and off-farm employment, among other household factors, have a strongly reducing effect on both the intensity and incidence of poverty. Furthermore, some commune characteristics were found to be closely linked to poverty. Notably, the presence of means of transport and post offices significantly reduces both poverty intensity and incidence. However, other commune and household factors affect only poverty incidence or intensity but not both. Hence, a typical approach using a logit/probit model that only examined the determinants of poverty incidence did not adequately evaluate or even ignored important impacts of some factors on poverty intensity. We draw both socio-economic household and commune level implications for poverty alleviation in the study area.

Does rising import competition harm local firm productivity in less advanced economies? Evidence from the Vietnam's manufacturing sector

This paper examines whether rising import penetration has an effect on the productivity of domestic firms. The study uses data on a 10-year unbalanced panel of firms in the manufacturing sector in Vietnam from 2000 to 2009. Panel and instrumental variable methods are used to control firm heterogeneity and endogeneity of import penetration. We find statistically significant and negative effects of import competition on local firms’ productivity, but the effect in terms of magnitude is economically small. Further investigation shows no clear evidence of variations in the effects by firm size and technological level. However, we find that rising import penetration is associated with the likelihood of firm death.

Firm exporting and productivity: what if productivity is no longer a black box

ABSTRACT This paper uses Vietnamese firm-level data to examine the relationship between firm productivity and exporting. In particular, this paper shows that more productive firms are more likely than less productive firms to export, consistent with the extensive prior literature. However, this paper finds no evidence that exporting affects productivity, which can be decomposed into technical efficiency change, technological progress, and scale change. Thus, the findings support a large role of self-selection in accounting for export decision, but little gain from learning-by-exporting in the case of Vietnamese Small medium sized enterprises (SMEs). These findings imply that export promotion policies may not be effective unless accompanied by strategies to help SMEs become more productive.

Housing satisfaction and its correlates: a quantitative study among residents living in their own affordable apartments in urban Hanoi, Vietnam

ABSTRACT Using a novel dataset involving 450 respondents living in their own affordable apartments in urban Hanoi, this study examines the housing satisfaction of the respondents and its correlates. We find that housing satisfaction is positively associated with household income but negatively related to education. Interestingly, the study finds that residents borrowing from banks to buy a home are less satisfied with their home than their non-borrowing counterparts. We also find that respondents’ positive evaluation of features of their apartments, such as the design, construction quality and price, is strongly linked with housing satisfaction. In addition, the location of the house and quality of the environment in the area were found to be major factors affecting housing satisfaction.

Factors affecting the intensity of nonfarm participation among ethnic minorities in Northwest Mountains, Vietnam

Purpose - – Little econometric evidence exists on the determinants of nonfarm participation among ethnic minorities in Vietnam. The purpose of this paper is to examine the intensity of nonfarm participation and its correlates among ethnic minority households in Northwest Mountains – the poorest region of Vietnam. Design/methodology/approach - – Factors affecting the level of nonfarm participation were examined by using a fractional logit model. In addition, regression analysis using analysis of variance models were used to compare the mean of household characteristics and assets between households with and without nonfarm employment. Findings - – The study found that households depended heavily on agriculture for subsistence and their access to nonfarm employment is very limited. Households with nonfarm employment had much higher levels of education, income, assets and a much lower level of poverty than those without nonfarm participation. The intensity of nonfarm participation is positively associated with education levels, proportion of male working members and fixed assets but negatively correlated with the size of annual crop land and water surface for aquaculture. Also, the presence of nonfarm opportunities and paved roads in a commune increases the intensity of nonfarm participation for households living in that commune. Practical implications - – The findings suggest that any poverty alleviation policies should aim at improving the access of ethnic minorities to education and nonfarm job opportunities. Originality/value - – The study offers the first evidence of factors affecting the intensity of nonfarm participation among ethnic minorities in the study area.