Vietnam - Japan economic partnership agreement (VJEPA) and garment export of Vietnam

Abstract: 1262 | PDF: 1768

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Author

  • Huynh Thi Dieu Linh
    The University of Danang - University of Economics
    Truong Thi Huong
    The University of Danang - University of Economics

Keywords:

VJEPA
exports
garments
Vector Error Correction Model (VECM)
gravity model

Abstract

This study analyzes the impact of VJEPA on garment exports from Vietnam to Japan. The Vector Error Correction Model (VECM) is applied in this study with quarterly time series data, from the first quarter of 2004 to the fourth quarter of 2019. In addition to the GDP variable of the traditional gravity model, some tariff and non-tariff measures are also included to consider the impact on trade. The estimated results show that, in the long run, Japan's economic size has a significant positive impact on Vietnam's garment exports. Average tax rates and quantitative restrictions have a significant negative effect on Vietnam's exports of garment. The most important variable in the study, the variable proxied for VJEPA agreement had a significant positive effect as initially predicted. This shows that, joining this agreement has contributed to promoting Vietnam's garment exports to Japan.

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Published

Oct 31, 2022
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How to Cite
Huỳnh Thị Diệu Linh, and Trương Thị Hương. “Vietnam - Japan Economic Partnership Agreement (VJEPA) and Garment Export of Vietnam”. The University of Danang - Journal of Science and Technology, vol. 20, no. 10.1, Oct. 2022, pp. 20-25, https://jst-ud.vn/jst-ud/article/view/8130.

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