[STBI-03-11-2016] Total factor productivity and the learning mechanism by exporting: Case study for SME in Vietnam

11:00 am, Thrusday, 03-11-2016 Hall H.001, 1A Hoang Dieu Street, Ward 10, Phu Nhuan District Speakers: Ngo Hoang Thao Trang | University of Economics Ho Chi Minh City | trangnht@ueh.edu.vn

Abstract:

By using two-step system GMM method, the study tests the learning mechanism by exporting hypothesis of SME in Vietnam from 2005 to 2013. The results show that export has a positive impact on total factor productivity at a firm level. Moreover, the study finds reasons for an appearance of learning mechanism by exporting: (1) exporting firms receive technological transfers from developed countries; (2) exporting firms have enough capabilities to absorb knowledge generated by exporting. The findings suggest that SMEs in Vietnam should invest in R&D and machinery and equipment; human resources; actively explore and access to developed countries. Moreover, the government should support formal credits; internet services and business environment for SMEs to improve the capacity to absorb foreign knowledge through exporting.

Keywords: export, total factor productivity, SMEs, learning by exporting, export destination