Agricultural export, logistics performance, and institutional quality: The case of Vietnam
Article Sidebar
Main Article Content
Abstract
Agricultural export has contributed greatly to Vietnamese economy over the past decades. Nevertheless, logistics performance and institutional quality have been identified as chronic inhibitors and bottlenecks which hamper the export growth of Vietnam. This paper aimed at investigating whether agricultural export was hindered logistically and institutionally. The considered case was Vietnam and major trading partners in the 2007-2018 period. The panel data analysis with fixed and random effects for the baseline estimation was used. Findings indicated that the agricultural export was positively influenced by income per capita and economic and institutional quality similarity between trading partners. Improved logistics performance may unintentionally cause a short term decrease in agricultural export. Institutional quality needs to be enhanced with substantive and specific contents related to the agricultural sector, which mitigates the institutional inequality between industries and locals in the economy.
Article Details
References
Alhassan, A., & Payaslioglu, C. (2020). Institutions and bilateral trade in Africa: an application of poisson’s estimation with high-dimensional fixed effects to structural gravity model. Applied Economics Letters 27(16), 1357-1361. https://doi.org/10.1080/13504851.2019.1682112.
Álvarez, I. C., Barbero, J., Rodríguez-Pose, A., & Zofío, J. L. (2018). Does institutional quality matter for trade? Institutional conditions in a sectoral trade framework. World Development 103, 72-87. https://doi.org/10.1016/j.worlddev.2017.10.010.
Bugarcic, F. Z., Skvarciany, V., & Stanisic, N. (2020). Logistics performance index in international trade: Case of central and Eastern European and Western Balkans countries. Business: Theory and Practice 21(2), 452-459. https://doi.org/10.3846/btp.2020.12802.
Campi, M., & Duenas, M. (2016). Intellectual property rights and international trade of agricultural products. World Development 80, 1-18. https://doi.org/10.1016/j.worlddev.2015.11.014.
Celebi, D. (2019). The role of logistics performance in promoting trade. Maritime Economics & Logistics 21(3), 307–323. https://doi.org/10.1057/s41278-017-0094-4.
Dong, C. V., & Truong, H. Q. (2020). The determinants of creative goods exports: evidence from Vietnam. Journal of Cultural Economics 44(2), 281-308. https://doi.org/10.1007/s10824-019-09359-y.
Eshetu, F., & Goshu, D. (2021). Determinants of ethiopian coffee exports to its major trade partners: A dynamic gravity model approach. Foreign Trade Review 56(2), 185-196. https://doi.org/10.1177/0015732520976301.
Harris, R. D. F., & Tzavalis, E. (1999). Inference for unit roots in dynamic panels where the time dimension is fixed. Journal of Econometrics 91(2), 201-226. https://doi.org/10.1016/S0304-4076(98)00076-1.
Hausman, J. A. (1978). Specification tests in econometrics. Econometrica: Journal of The Econometric Society 46(6), 1251-1271. https://doi.org/10.2307/1913827.
Im, K. S., Pesaran, M. H., & Shin, Y. (2003). Testing for unit roots in heterogeneous panels. Journal of Econometrics 115(1), 53-74. https://doi.org/10.1016/S0304-4076(03)00092-7.
Le, N. D. (2022). Export, logistics performance, and regional economic integration: Sectoral and sub-sectoral evidence from Vietnam. Journal of International Logistics and Trade 20(1), 37-56. https://doi.org/10.24006/jilt.2022.e3.
Levin, A., Lin, C. F., & Chu, C. S. J. (2002). Unit root tests in panel data: asymptotic and finite-sample properties. Journal of Econometrics 108(1), 1-24. https://doi.org/10.1016/S0304-4076(01)00098-7.
Nguyen, D. D. (2020). Determinants of Vietnam’s rice and coffee exports: using stochastic frontier gravity model. Journal of Asian Business and Economic Studies 29(1), 19-34. https://doi.org/10.1108/JABES-05-2020-0054.
North, D. C. (1990). Institutions, institutional change and economic performance. Cambridge, UK: Cambridge University Press.
Porter, M. E. (1990). The competitive advantage of nations. Harvard Business Review – Analytic Services 564.
Poyhonen, P. (1963). A tentative model for the volume of trade between countries. Weltwirtschaftliches Archive 90, 93-100. https://www.jstor.org/stable/40436776.
Song, M. J., & Lee, H. Y. (2022). The relationship between international trade and logistics performance: A focus on the South Korean industrial sector. Research in Transportation Business & Management 44, 100786. https://doi.org/10.1016/j.rtbm.2022.100786.
Tinbergen, J. (1962). Shaping the world economy: Suggestions for an international economic policy. American Journal of Agricultural Economics 46(1), 271-273. https://doi.org/10.2307/1236502.
Vu, H. T. T., Tian, G., Zhang, B., & Nguyen, V. T. (2020). Determinants of Vietnam’s wood products trade: Application of the gravity model. Journal of Sustainable Forestry 39(5), 445-460. https://doi.org/10.1080/10549811.2019.1682011.
Wiederer, C., & Straube, F. (2019). A decision tool for policymakers to foster higher-value perishable agricultural exports. Transportation Research Interdisciplinary Perspectives 2, 100035. https://doi.org/10.1016/j.trip.2019.100035.
Zaninovi´c, P. A., Zaninovi´c, V., & Skender, H. P. (2021). The effects of logistics performance on international trade: EU15 vs CEMS. Economic Research Ekonomska Istraˇzivanja 34(1), 1566-1582. https://doi.org/10.1080/1331677X.2020.1844582.
Zeynalov, A. (2017). The gravity of institutions in a resource-rich country: the case of Azerbaijan. International Economics and Economic Policy 14(2), 239-261. https://doi.org/10.1007/s10368-016-0337-3.