Determinants of Vietnamese footwear exporting firms' market selection: A multinomial logistic analysis of panel data

Quan-Hoang Vuong; Thi-Hanh Vu; Quang-Hung Doan; Manh-Tung Ho

doi:10.1016/j.heliyon.2019.e02582

Determinants of Vietnamese footwear exporting firms' market selection: A multinomial logistic analysis of panel data

Heliyon. 2019 Oct 18;5(10):e02582. doi: 10.1016/j.heliyon.2019.e02582. eCollection 2019 Oct.

Authors

Quan-Hoang Vuong^{1

2}, Thi-Hanh Vu³, Quang-Hung Doan⁴, Manh-Tung Ho⁵

Affiliations

¹ Centre for Interdisciplinary Social Research, Phenikaa University, Yen Nghia, Ha Dong, Hanoi 100803, Viet Nam.
² Faculty of Economics and Finance, Phenikaa University, Yen Nghia, Ha Dong, Hanoi 100803, Viet Nam.
³ School of Economics and International Business, Foreign Trade University, Hanoi, Viet Nam.
⁴ Faculty of Basic Science, Foreign Trade University, Hanoi, Viet Nam.
⁵ Centre for Interdisciplinary Social Research, Phenikaa University, Hanoi, Viet Nam.

Abstract

The literature on export activities is dominated by studies on the determinants of export performance, we contribute to this literature by investigating the determinants of selection of markets by using panel data of Vietnam's footwear firms for the 2006-2010 period. Since no variance was found between firms, a pooled multinomial logit model is consequently preferable. Among the notable results, export value shows a positive correlation with footwear firms serving the US and EU markets. Although Vietnamese footwear firms are less likely to export to the ASEAN countries, they tend to focus on diversifying their products in this market. Both private and FDI firms are less likely to export to the EU compared with their state-owned counterparts (SOEs). However, private firms outperform SOEs in the U.S market.

Keywords: Direction of trade; Economics; Export firms; Footwear exports; Multinomial logit; The European Union; The United States; Vietnam.