Multiproduct Firms, Tariff Liberalization, and Product Churning in Vietnamese Manufacturing

Multiproduct firms are the dominant players in international production and trade (Bernard, Jensen, and Schott 2010; Goldberg et al. 2010a). Moreover, these firms are active in alternating their combination of product varieties. In fact, Bernard, Jensen, and Schott (2010) have documented a frequent change in the product mix in the United States (US), where almost 50% of multiproduct firms change their product mix every 5 years. Indeed, firms’ adjustment in product scope constitutes one important layer of firm heterogeneity (Nocke and Yeaple 2006).