IMPACT OF INSTITUTIONAL COMPATIBILITY ON VIETNAM'S EXPORT MARKET

Abstract

The objective of this study is to assess the impact of institutional adaptability on Vietnam's export margin for the period 2006-2017. Based on theory, the study uses the Principal Factor Component to measure the institutional adaptability of Vietnam. In order to overcome the disadvantages of the traditional method in studying the factors affecting the export margin and ensure the correctness of the estimation results, this study applied the systematic GMM estimation method (System Generalized Method of Moments) because its outstanding features are to solve endogeneity, variable variance, series correlation phenomenon. Empirical results show that institutional adaptability plays an important role in Vietnam's exports. In particular, this factor has a more positive impact on the export of new products (exports by a wide margin). This shows that Vietnam needs specific plans and solutions to improve the institutional adaptability of companies in the international market.