Assoc.Prof.PhD Dao Ngoc Tien, PhD Nguyen Quynh Huong
Mapping the effective rate of protection in manufacturing industries: Evidence from Vietnam
Lĩnh vực:
Study Exchange
Số No.04 (35) 2025 (35)-2025 Journal of Finance & Accounting Research - Trang 81
Tóm tắt tiếng Việt:
English Summary:
This paper presents the first study to map the industry-level effective rate of protection (ERP) to provinces in a developing country such as Vietnam. By exploiting firm-level data and national input-output tables, our main findings are as follows. First, at the industry level, the ERP exhibited a decreasing trend from 2011 to 2015. This trend aligns with movements in the nominal rate of protection (NRP) on outputs and the input tariff rate (ITR). Notably, some high-technology-intensive industries consistently recorded negative ERP values (indicating negative net protection, which is harmful to the domestic industry). This was particularly evident in the manufacture of chemical products and computers, electronic, and optical equipment throughout the 2011-2015 period. Conversely, the highest positive ERP values (signifying the most protected industries) were consistently observed in certain final goods manufacturing sectors: textiles, leather, and footwear; motor vehicles, trailers, and semi-trailers; and manufacturing n.e.c. (not elsewhere classified), including recycling. Second, at the provincial level, several provinces within the Northern Key Economic Zone exhibited higher ERP values in 2011; however, these values declined significantly by 2015. By 2015, some provinces in the Central region demonstrated the highest provincial ERP values. The mapping methodology developed in this study and its findings may provide valuable insights of the regional effective rate of protection for trade policymakers when negotiating bilateral and multilateral trade agreements.
Từ khóa:
Vietnam, mapping, trade policies, ERP
Số lượt đọc: 6 - Số lượt tải về: 4
DOI Code: https://doi.org/10.71374/jfar.v25.i4.17