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A longitudinal study of self-selection, learning-by-exporting and core-competence: The case of small- and medium- sized enterprises in Vietnam

Based on longitudinal data from biennial surveys of small- and medium- sized enterprises (SMEs) in Vietnam conducted from 2007 to 2013, we find supports to the self-selection and learning-by-exporting hypotheses. We find that the SMEs having higher sunk costs and capital size are more likely to become exporters. | A longitudinal study of self-selection learning-by-exporting and core-competence The case of small- and medium- sized enterprises in Vietnam Accounting 6 2020 481 492 Contents lists available at GrowingScience Accounting homepage www.GrowingScience.com ac ac.html A longitudinal study of self-selection learning-by-exporting and core-competence The case of small- and medium- sized enterprises in Vietnam Pham Thi Huyen Tranga and Hoang Nam Vua aForeign Trade University Vietnam CHRONICLE ABSTRACT Article history Based on longitudinal data from biennial surveys of small- and medium- sized enterprises SMEs in Received March 22 2020 Vietnam conducted from 2007 to 2013 we find supports to the self-selection and learning-by-exporting Received in revised format March hypotheses. We find that the SMEs having higher sunk costs and capital size are more likely to become 30 2020 exporters. Applying the propensity score matching method in combination with the Difference-in- Accepted April 14 2020 Available online Difference estimation the study finds that export has raised SMEs productivity measured by either April 14 2020 TFP or labor productivity sales revenue and value added of the SMEs. Furthermore the gains from Keywords learning-by-exporting and specializing in core-competence products were stronger in the early years Self-selection of entry into the export markets. These findings suggest policies to promote export of SMEs in an Learning-by-exporting appropriate timing. Core competency SMEs Vietnam 2020 by the authors licensee Growing Science Canada 1. Introduction As firms grow in increasingly limited domestic markets they will export their products. Understanding what factors determine firms export behavior is important. Indeed a large body of literature has provided insights into various determinants of firms export behaviors which are both internal and external to firms Monreal-Pérez et al. 2012 Vu et al. 2013 Wagner 2007 2012 . These studies highlighted key internal