The impact of export diversification on the export growth: The case of Vietnam shrimp industry

Abstract

There has been an increasing consensus about the important role of export diversification on the export activities of one country or industry. The objective of this paper is to examine the role of export diversification in Vietnam’s shrimp export growth over the years. Specifically, we analysed the impact of export market diversification and export product diversification on Vietnam's shrimp export growth in the period 2005 - 2020 by expanding the model of export demand function and using the ARDL model with the Bound test method. The article is one of the few empirical studies analysing the impact of export diversification on the export growth of an agricultural product. The empirical results show that export market diversification has a positive effect in the short term as well as in the long term, while export product diversification has only a positive impact in the short term on shrimp export growth. Therefore, Vietnam’s shrimp industry should continue promoting export diversification, especially focusing on market diversification to support sustainable export growth.