Determinants of TFP in the fisheries sector of 28 coastal provinces in Vietnam
Abstract
This study uses annual data of The Enterprise Survey and Provincial Competitiveness Index to analyze determinants of TFP of the fisheries sector and fishery firms in 28 coastal provinces of Vietnam. The paper evaluated the effects of different institutional variables on TFP at the firm level. In addition, impacts of macro variables on sector’s TFP were also analyzed using sector aggregated TFP. Analyses of the study show that the industry’s macro environment and firm characteristics significantly affect the fisheries sector’s productivity. At the macro level, the more transparent the environment is, the higher the TFP. Thus, it is suggested that the local authorities of the coastal provinces of Vietnam need to speed up their reforms in administrative procedures, creating a favorable business environment for firms. At the micro-level, the variable of firm size is positively correlated with the TFP in the fisheries sector. The larger the size of the firm, the higher the productivity. In a labor-intensive industry such as fisheries, productivity increases with labor, indicating a low science and technology application level. To increase the sector’s productivity, state support to expand the application of advanced technologies for domestic firms is essential.
Keyword : coastal provinces, fisheries, TFP, industry, firm
How to Cite
Duc, N. C., Thuy, H. T. T., Phuong, P. T. T., Hung, L. V., & Trung, N. N. (2022). Determinants of TFP in the fisheries sector of 28 coastal provinces in Vietnam. Business: Theory and Practice, 23(2), 435–444. https://doi.org/10.3846/btp.2022.15885
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Wooldridge, J. M. (2009). On estimating firm-level production functions using proxy variables to control for unobservables. Economics Letters, 104(3), 112–114. https://doi.org/10.1016/j.econlet.2009.04.026
Ackerberg, D. A., Caves, K., & Frazer, G. (2015). Identification properties of recent production function estimators. Econometrica, 83(6), 2411–2451. https://doi.org/10.3982/ECTA13408
Bhupat, M. D., & Namboodiri, N. V. (1997). Determinants of total factor productivity in Indian agriculture. Economic and Political Weekly, 32(52), A165–A171.
Combes, P.-P., Duranton, G., & Gobillon, L. (2018). The costs of agglomeration: House and land prices in French cities. The Review of Economic Studies, 86(4), 1556–1589. https://doi.org/10.1093/restud/rdy063
Combes, P.-P., Duranton, G., Gobillon, L., Puga, D., & Roux, S. (2012). The productivity advantages of large cities: Distinguishing agglomeration from firm selection. Econometrica, 80(6), 2543–2594. https://doi.org/10.3982/ECTA8442
Comin, D. (2010). Total factor productivity. In S. N. Durlauf & L. E. Blume (Eds.), Economic growth (pp. 260–263). Palgrave Macmillan. https://doi.org/10.1057/9780230280823_32
Djankov, S., McLiesh, C., & Ramalho, R. M. (2006). Regulation and growth. Economics Letters, 92(3), 395–401. https://doi.org/10.1016/j.econlet.2006.03.021
Faccio, M. (2010). Differences between politically connected and nonconnected firms: A cross-country analysis. Financial Management, 39(3), 905–928. https://doi.org/10.1111/j.1755-053X.2010.01099.x
Giang, M. H., Xuan, T. D., Trung, B. H., & Que, M. T. (2019). Total factor productivity of agricultural firms in Vietnam and its relevant determinants. Economies, 7(1), 4. https://doi.org/10.3390/economies7010004
Glaeser, E. L., & Resseger, M. G. (2010). The complementarity between cities and skills. Journal of Regional Science, 50(1), 221–244. https://doi.org/10.1111/j.1467-9787.2009.00635.x
Goldman, E., Rocholl, J., & So, J. (2013). Politically connected boards of directors and the allocation of procurement contracts. Review of Finance, 17(5), 1617–1648. https://doi.org/10.1093/rof/rfs039
Grossman, G. M., & Helpman, E. (1991). Trade, knowledge spillovers, and growth. European Economic Review, 35(2), 517–526. https://doi.org/10.1016/0014-2921(91)90153-A
Isaksson, A. (2007). Determinants of total factor productivity: A literature review. United Nations Industrial Development Organization.
Johnson, S., & Mitton, T. (2003). Cronyism and capital controls: Evidence from Malaysia. Journal of Financial Economics, 67(2), 351–382. https://doi.org/10.1016/S0304-405X(02)00255-6
Kim, J., Lee, S. J., & Marschke, G. (2009). Inventor productivity and firm size: Evidence from panel data on inventors. Pacific Economic Review, 14(4), 516–531. https://doi.org/10.1111/j.1468-0106.2009.00469.x
Levinsohn, J., & Petrin, A. (2003). Estimating production functions using inputs to control for unobservables. The Review of Economic Studies, 70(2), 317–341. https://doi.org/10.1111/1467-937X.00246
Li, F., Xing, W., Su, M., & Xu, J. (2021). The evolution of China’s marine economic policy and the labor productivity growth momentum of marine economy and its three economic industries. Marine Policy, 134, 104777. https://doi.org/10.1016/j.marpol.2021.104777
Mo, J., Qiu, L. D., Zhang, H., & Dong, X. (2021). What you import matters for productivity growth: Experience from Chinese manufacturing firms. Journal of Development Economics, 152, 102677. https://doi.org/10.1016/j.jdeveco.2021.102677
Moaniba, I. M., Su, H.-N., & Lee, P.-C. (2020). Geographic distance between co-inventors and firm performance: The moderating roles of interfirm and cross-country collaborations. Technological Forecasting and Social Change, 157, 120070. https://doi.org/10.1016/j.techfore.2020.120070
North, D. C. (1994). Economic performance through time. The American Economic Review, 84(3), 359–368.
Olley, G. S., & Pakes, A. (1996). The dynamics of productivity in the telecommunications equipment industry. Econometrica, 64(6), 1263–1297. https://doi.org/10.2307/2171831
Olper, A., Pacca, L., & Curzi, D. (2014). Trade, import competition and productivity growth in the food industry. Food Policy, 49, 71–83. https://doi.org/10.1016/j.foodpol.2014.06.004
Saliola, F., & Şeker, M. (2012). Measuring total factor productivity using micro-level data from enterprise surveys. Enterprise Analysis Unit.
Şeker, M., & Saliola, F. (2018). A cross-country analysis of total factor productivity using micro-level data. Central Bank Review, 18(1), 13–27. https://doi.org/10.1016/j.cbrev.2018.01.001
Solow, R. M. (1957). Technical change and the aggregate production function. The Review of Economics and Statistics, 39(3), 312–320. https://doi.org/10.2307/1926047
Syverson, C. (2011). What determines productivity? Journal of Economic Literature, 49(2), 326–365. https://doi.org/10.1257/jel.49.2.326
Teh, L. C. L., & Sumaila, U. R. (2013). Contribution of marine fisheries to worldwide employment. Fish and Fisheries, 14(1), 77–88. https://doi.org/10.1111/j.1467-2979.2011.00450.x
Tovar, B., Javier Ramos-Real, F., & de Almeida, E. F. (2011). Firm size and productivity. Evidence from the electricity distribution industry in Brazil. Energy Policy, 39(2), 826–833. https://doi.org/10.1016/j.enpol.2010.11.001
Van Beveren, I. (2012). Total factor productivity estimation: A practical review. Journal of Economic Surveys, 26(1), 98–128. https://doi.org/10.1111/j.1467-6419.2010.00631.x
Vietnam association of seafood exporters and producers. (2021). Report on Vietnam seafood exports in 2020. https://seafood.vasep.com.vn/reports
Wang, S., Lu, B., & Yin, K. (2021). Financial development, productivity, and high-quality development of the marine economy. Marine Policy, 130, 104553. https://doi.org/10.1016/j.marpol.2021.104553
Wang, S. L., & Walden, J. B. (2021). Measuring fishery productivity growth in the Northeastern United States 2007–2018. Marine Policy, 128, 104467. https://doi.org/10.1016/j.marpol.2021.104467
Wooldridge, J. M. (2009). On estimating firm-level production functions using proxy variables to control for unobservables. Economics Letters, 104(3), 112–114. https://doi.org/10.1016/j.econlet.2009.04.026