Aspects Affecting Total Factor Productivity in the Maritime Economic Sector: Analysis from a Long Coastline Nation

Abstract

Total Factor Productivity (TFP) plays an essential role in the economic development of every nation. Moreover, recommendations from TFP analysis for any economic sector at the firm level may help researchers and policymakers to obtain a better view of the sector. With a long coastline, the maritime sector, including seaports, warehousing and logistics, has become a promising industry since Vietnam’s integration. Using a panel-data model with different data sources, this research shows that the local GDP growth rate positively impacts the productivity of enterprises in the maritime sector and the productivity of the whole industry. Other variables such as access to land, accessibility of information, time cost, proactivity of provincial leadership, and labour and training also significantly impact the productivity of this industry. In addition, the larger
enterprises are, the higher the productivity they obtain. Finally, both import and export activities are significantly positive for the maritime economy's productivity.