The paper aims to investigate the impact of trade cost on export: A Case Study Vietnam. The study conducts a static linear panel data analysis on annual data covering bilateral export between Vietnam and 70 major importers of Vietnam from 2001 to 2013. The gravity model has been one of the most successful applications in empirical trade. In this paper we apply the gravity model to estimate the impact of trade cost on Vietnamese bilateral export value. The paper uses gravity model to estimate the impact of trade cost on Vietnamese bilateral export value. The empirical results derive from a static linear panel data analysis (fixed effects model) indicates that trade cost plays a crucial role in determining the export value that occurs between Vietnam and trading partners. Besides, population of importing country, trade openness of importing country, gross domestic product of importing country and gross domestic product of Vietnam are also significant determinants of Vietnamese bilateral export value. The main findings indicates that trade cost plays a very important role in the Vietnamese bilateral export performance. This suggests that the Vietnamese government should attempt to improve domestic trade costs to enhance competitiveness and increase export growth sustainably.
Trade balance is one of the important macro balances and has a strong impact on the balance of payments and the overall national economy. A country with a large trade deficit may experience lowered competitiveness of goods, export growth, and economic growth. This paper focuses on analyzing the core factors affecting Vietnam's trade balance in the context of global value chain accession. The author uses Bound-Testing method and ARDL model with data from 1990 to 2018 to identify factors affecting Vietnam's trade balance. The results show that, in the long term, Vietnam’s trade balance is affected by factors – ranked from the highest to the lowest – as follows: real GDP of trading partners; Vietnam’s real GDP; multilateral effective exchange rate; foreign added value in Vietnam's exported goods and FDI capital into Vietnam. From these important findings, the author proposes some implications for policymakers so as to improve the trade balance in the context of deeper participation in the global value chain.
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