On the revision of detecting learning-by-exporting: empirical evidence from the small- and medium-sized enterprises in Vietnam

Abstract

This study aims to identify the role of exports in improving the productivity of small- and medium-sized enterprises (SMEs) in Vietnam. We exploit the firm-level panel dataset from the Vietnam SME Survey between 2009 and 2014. This remarkable period occurred two years after Vietnam’s accession to the World Trade Organization. Hence, for the first time, the learning-by-exporting hypothesis was tested for a case study of SMEs in developing countries in the context of international trade integration, such as Vietnam. By applying the propensity score matching method, our results are as follows. First, we find strong evidence that SMEs in Vietnam could improve their productivity when exporting during the studied period. Second, exports have a significant impact on the productivity of SMEs in non-municipal areas of Vietnam. Based on these findings, policy recommendations are suggested for stimulating the productivity of SMEs in developing countries. In particular, SMEs in non-municipal provinces might need more favorable policies to boost export activities.