Firm Efficiency in a Transitional Economy: Evidence from Vietnam

Thi Bich Tran, R. Quentin Grafton and Tom Kompas

Asian Economic Journal, 2008, vol. 22, issue 1, 47-66

Abstract: The paper examines efficiency performance of the non‐state small and medium manufacturing industries in a transitional and developing economy. Using firm level data in Vietnam from 1996 and 2001, cross‐sectional models are estimated using the stochastic frontier method. The results show a considerable variation in efficiency levels among firms and that a greater use of family labor and a metropolitan location are associated with improvement in technical efficiency. The results indicate few benefits from direct government financial and non‐financial assistance to businesses.

Date: 2008
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https://doi.org/10.1111/j.1467-8381.2008.00268.x

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