This study has examined whether trade liberalisation facilitated manufacturing firms in Vietnam to realise their production potentials fully using firm-level balanced panel data over the period 2000ȓ03. The fi ndings support the theoretical implications of the positive and robust impact of trade liberalisation on firm performance. The study reveals that while more trade liberalisation is conducive to better firm performance, increasing the share of skilled labour is the key for firms to achieve higher potential output in the long-run rather than using more unskilled labour, which is relatively more abundant in Vietnam. The policy implication is that more attention should be paid by policymakers to provide incentives and support for firms to facilitate upgrading the skills of their workers through different means such as on-the-job training.
After more than three decades of rapid growth, China 's economy is going through an important turning point, where structural imbalances in both supply and demand sides must be addressed for a more moderate and sustainable growth path. By focusing on the structural changes to its ownership, a central element in China 's economic transformation under market reform, the present paper highlights the importance of private entrepreneurship in deepening market reform and, thereby, in driving economic growth in a more efficient and sustainable way. Based on a perspective of resource allocation and a conceptual framework of entrepreneurship, the paper elaborates on the evolution of the private sector and its performance in the context of ownership reform, making comparisons with the performance of the state sector. The analysis suggests that there is further room for more productive use of economic resources, especially capital, land and natural resources, by increasing the participation of private entrepreneurs in industries with high entry barriers in favor of state-owned enterprises. Moreover, more competitive and equal access to productive resources through reform is needed to promote more productive entrepreneurship and to reduce rent-seeking activities.
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