AN EMPIRICAL STUDY OF THE TECHNICAL TRADE BARRIERS AND FREE TRADE AGREEMENTS ON VIETNAM’S APPAREL EXPORT VALUE AND EXPORT EFFICIENCY

Abstract

The study, firstly, aims to indicate factors affecting the export value and export efficiency of Vietnam’s apparels with Pool Regression, Fix Effect Model and Random Effect Model. In order to capture the effects of factors on export value, Gravity model of Tinbergen (1962) is applied. The results reveal that the gross domestic product of importing countries, Vietnam’s population and real exchange rate have a positive impact on Vietnam’s apparel export whereas importers’ population and geographical distance have the opposite effect. The export efficiency (TRE), which is estimated based on Battese and Coelli (1992) method, is indicated to be much lower than the potential. The study continues to examine the effect of technical barriers to trade (TBT) and the engagement into Free Trade Areas (FTA) around the world of Vietnam to the TRE coefficient, the result shows that both factors can impede and promote the coefficient.