Open AccessDeterminants of Vietnam’s Potential Trade: A Case Study of Agricultural Exports to the European Union
Author(s) -
Pham Hoang Linh,
Nguyen Khanh Doanh,
Nguyen Ngoc Quynh
Publication year - 2019
Publication title -
asian journal of agriculture and rural development
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.201
H-Index - 2
eISSN - 2304-1455
pISSN - 2224-4433
DOI - 10.18488/journal.1005/2019.9.1/1005.1.1.33.46
Subject(s) - agriculture , order (exchange) , frontier , european union , economics , international trade , business , international economics , agricultural economics , geography , finance , archaeology
This study aims at quantifying the determinants of Vietnam’s potential exports to the EU, taking agricultural commodities as a case study. In order to achieve this, we employed a stochastic frontier analysis to estimate Vietnam’s potential agricultural exports, and a system GMM approach to analyze the determinants of the estimated potential agricultural exports of Vietnam. The results showed that Vietnam’s potential agricultural exports to the EU have been high and on an upward trend. In addition, factors such as financial market development, trade freedom, technological readiness, and labor freedom have positive impacts on Vietnam’s potential agricultural exports to the EU. Measures to improve the financial market development, remove trade barriers, increase technological capability, and promote labour freedom are strongly suggested in order to enable Vietnam’s agricultural exports to attain its maximum level.