Impact of Export Opportunity on Productivity, Management Practices, and Working Environment in Manufacturers in Myanmar

Whether and how international trade improves productivity of firms in developing countries have been major topics of economic research. Empirical trade literature using plant or firm level data shows evidence that firm and industry productivities improve by exposure to international market. Yet, there is little direct evidence on what are the actual changes in practices of firms’ operation. To fill this gap, I request for funding to conduct a plant survey in Myanmar where the political transition since 2010 is causing dramatic improvement in its access to overseas market. The survey is planed to interview plant managers on the sales, market, employment, management and CSR (cooperate social responsibility) practices, and other constraints to expand business. The targeted plants are manufacturers in garment and food processing industries, one from export oriented industries and one from not. A planned survey in 2013 will serve a dual purpose: to investigate the impact of recent increase in export of garments to Japan and Korea and to be a baseline survey for the future panel survey for observing at the effect of export to the United States. Drawing evidence from pilot study in December 2012, I describe main research questions, survey scheme, relevance to SEED mission, and cost estimate.