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http://dx.doi.org/10.13106/jafeb.2020.vol7.no6.157

Analysis of Bilateral Input-Output Trading between Vietnam and China  

NGUYEN, Quang Thai (Vietnam Development Research Institute)
TRINH, Bui (Vietnam Development Research Institute)
NGO, Thang Loi (National Economics University)
TRAN, Manh Dung (National Economics University)
Publication Information
The Journal of Asian Finance, Economics and Business / v.7, no.6, 2020 , pp. 157-172 More about this Journal
Abstract
This study attempts to analyze trade flows between Vietnam and China in order to understand the mutual influence of bilateral trade relations. China is a country with the world's leading economic potential. China and Vietnam are neighboring countries sharing a border of 1,281 km. Trade relations between the two countries are a necessity and, with a right policy, are beneficial to both. Vietnam has a trade deficit with China. This situation is exacerbated by the continuing rise in the gap. Vietnam trade deficit from China was USD12.5 billion in 2010, increasing to USD24 billion in 2018. Data are extracted from the 2015 national input-output tables of Vietnam and China as well as Vietnam Household Living Standard Survey statistics. The research identified 36 sectors of bilateral input-output trade between Vietnam and China. A bilateral output-input model is applied to analyze how final demand and use of input in the production of this country induces output and value added of the other country. The results show that China benefits more from Vietnam's production and consumption than Vietnam does. Vietnam's inter-sector structure does not stimulate domestic production due to the absence of supporting products as inputs in the production process.
Keywords
Bilateral Trade; China; Input and Output Model; Vietnam;
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Times Cited By KSCI : 4  (Citation Analysis)
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