This paper used a stochastic frontier gravity model to evaluate the bilateral trade effiency of Vietnam using the bilateral trade data of Vietnam’s main trade counterparts in the period 2000-2015. Trade effiency means the actual trade in comparison with the trade potential. Empirical results show that Vietnam’s trade performance was signifiantly lower than the potential level. Joining the WTO did not improve trade effiency. The impact of FTAs on exploiting bilateral trade potential is heterogeneous across counterparts
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This paper used a stochastic frontier gravity model to evaluate the bilateral trade effiency of Vietnam using the bilateral trade data of Vietnam’s main trade counterparts in the period 2000-2015. Trade effiency means the actual trade in comparison with the trade potential. Empirical results show that Vietnam’s trade performance was signifiantly lower than the potential level. Joining the WTO did not improve trade effiency. The impact of FTAs on exploiting bilateral trade potential is heterogeneous across counterparts
