Evidence from Firm-level Data in Vietnam

integration into the world trading system, at least between the two years.Besides the contribution to the literature in examining the relationship between firm heterogeneityand export decision, some implications for trade policy makers can be expected from the analysis of this paper.It is obvious from findings in this paper that entry costs are a huge barrier for firms in going abroad. Helpingfirms in getting over this barrier will not only create room for more firms to export but also pave a easy wayfor the entry-exit process, that in turn boosts the process of resource reallocation according to the country’sadvantage, not to mention the reallocation of resource towards more successful firms. Together with theevidence about the reserve effect of exporting on firm characteristics or the determinants of export intensity,the findin gs in this paper can give proper suggestions on which firms should be supported in exporting for thepurpose of economic growth, on the measures used in intervening the labor market or on trade-relatedindustrialization policies.This paper deals only with the determinants of the decision to export or not to export of firms.However, we all know that exporting behavior is not only to decide whether to export or not. It also involvesthe decision on which lev el of export involvement (i.e., the decision on the export share in total sales), or onwhich produc ts to produce for exports and which markets to export to. Besides, the findings of this paper alsogive a hint on the existence of the learning-by-exporting effect in the case of Vietnam. All of these ideas arepossible for further examination in future studies.24