Spatial effects of institutional quality on firm performance: evidence from Vietnam

The Nguyen Huynh

Asian-Pacific Economic Literature, 2022, vol. 36, issue 2, 89-105

Abstract: The impact of national institutions on the economy has attracted research attention for decades. However, research on the influence of subnational institutions at the firm level is modest. This paper examines the spatial effects of institutional quality on firm performance using evidence from Vietnam. The model employed in the research is the Spatial Durbin Model (SDM), which is used to test hypotheses on data collected from enterprise surveys in the provinces of Vietnam over the period 2011–18. The research results show that the institutional quality of a locality has a direct impact on firm performance in that locality and indirectly affects firms in adjacent localities. At the same time, enterprises in different localities not only interact spatially with each but also tend to cooperate and compete. The results also show that the control of corruption positively affects the profits of enterprises; and informal charges negatively influence firms' total factor productivity in Vietnam. These findings imply that improving the quality of subnational institutions in emerging countries such as Vietnam promotes the growth of enterprises.

Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/apel.12362

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:apacel:v:36:y:2022:i:2:p:89-105

Ordering information: This journal article can be ordered from
https://ordering.onl ... 7-8411&ref=1467-8411

Access Statistics for this article

Asian-Pacific Economic Literature is currently edited by Yixiao Zhou

More articles in Asian-Pacific Economic Literature from The Crawford School, The Australian National University
Bibliographic data for series maintained by Wiley Content Delivery ().