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Impact of transport costs on Vietnamese textile exports

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Transport cost is a critical component that structure price of goods at destination points in international trade. This research explored and analyzed transport cost and its impact on export by gravity model. The two stage least squares (2 SLS) model in the estimation was used, in which for the first stage, the transport cost is regressed on a set of exogenous variables including five instrumental variables that affect transport cost, but do not affect exports.

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