| Effects of Technical Barriers to Trade on Vietnam’s Export Performance and Global Value Chain Participation |
Jihyun Eum, |
| Kangwon National University, Chuncheon, Republic of Korea |
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Corresponding Author:
Jihyun Eum ,Email: eum@kangwon.ac.kr |
| Copyright ©2025 The Journal of Economic Integration |
| ABSTRACT |
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This study investigates the effects of Technical Barriers to Trade (TBTs) on Vietnam’s exports, with a focus on participation in Global Value Chains (GVCs). Utilizing panel data on product-level exports from 2007 to 2019 and employing a modified gravity model, we assess the impact of TBTs by considering its way to participate GVC. We find that TBTs are positively associated with Vietnam's export performance. Nonetheless, in sectors where Vietnam is deeply engaged in backward GVC participation, in low value-added activities such as assembly, TBTs incur additional compliance costs, which mitigate the positive effects on exports. Moreover, TBTs implemented by OECD member countries raise compliance costs for Vietnam due to stringent TBT requirements, thereby reducing Vietnam’s exports regardless of the sectors in which Vietnam is highly involved in GVCs. However, TBTs from non-OECD countries in sectors where Vietnam participates in forward GVC stimulate import demand by providing positive signals regarding quality, which enhances Vietnam’s exports.
JEL Classification
F10: General
F13: Trade Policy; International Trade Organizations
F14: Empirical Studies of Trade |
| Keywords:
Technical Barriers to Trade | Global Value Chain | Vietnam’s Export
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