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

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.

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