Trade liberalization and total factor productivity: Evidence from Vietnamese manufacturing sector

The study in this paper utilizes Vietnamese firm-level data to investigate the relationship between trade liberalization and the productivity performance of Vietnam’s manufacturing sector. The data covers the years 2007 to 2016 when substantial trade liberalization took place. The semi-parametric approach developed by Levinsohn and Petrin (2003) is used to control for simultaneity bias in the estimation of a production function and to obtain TFP estimates.