{"title":"Vietnam’s Ascendancy in the Electronics Trade and the Role of Inward FDI","authors":"H. H. Vu, Craig R. Parsons","doi":"10.1080/10599231.2022.2145625","DOIUrl":null,"url":null,"abstract":"ABSTRACT A new regression-based revealed comparative advantage (RCA) index is used to analyze Vietnam’s export. Vietnam has the highest RCA in electronics, surpassing Japan, South Korea and China. It suggests that Vietnam may be a new follower of the “flying geese” style and reinforce the view that inward FDI can change comparative advantage if the magnitude is sufficiently large. With detailed FDI and local data, we estimate the FDI which made this happen was roughly 6% of GDP. Lastly, we opine that while RCA in footwear may decline if wages rise, that in electronics may be here to stay.","PeriodicalId":15043,"journal":{"name":"Journal of Asia-Pacific Business","volume":"23 1","pages":"302 - 325"},"PeriodicalIF":0.0000,"publicationDate":"2022-10-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Asia-Pacific Business","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1080/10599231.2022.2145625","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"Business, Management and Accounting","Score":null,"Total":0}
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Abstract
ABSTRACT A new regression-based revealed comparative advantage (RCA) index is used to analyze Vietnam’s export. Vietnam has the highest RCA in electronics, surpassing Japan, South Korea and China. It suggests that Vietnam may be a new follower of the “flying geese” style and reinforce the view that inward FDI can change comparative advantage if the magnitude is sufficiently large. With detailed FDI and local data, we estimate the FDI which made this happen was roughly 6% of GDP. Lastly, we opine that while RCA in footwear may decline if wages rise, that in electronics may be here to stay.
期刊介绍：
Present circumstances underscore the need to improve the understanding of conducting business with and within the Asia-Pacific countries. The Journal of Asia-Pacific Business™ provides a blend of cutting-edge knowledge and practical applications on business management and marketing strategy. In the Journal of Asia-Pacific Business™, you will find articles and feature sections that provide a pragmatic view of the business environment in this dynamic region. This essential resource offers readers a good blend of descriptive, conceptual, and theoretical articles dealing with current topics.
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