Relationship Between the Provincial Competitiveness Index and Corporate R&D Investment in Vietnam

Thu Ha Nguyen, Truong Giang Nguyen and Cao Chuong Nguyen

Global Journal of Emerging Market Economies, 2025, vol. 17, issue 2, 286-301

Abstract: This study investigates how the quality of economic governance impacts corporate research and development (R&D) investment in Vietnam. We use the Provincial Competitiveness Index (PCI) to gauge economic governance quality. Our findings indicate that improved economic governance encourages firms to invest more in R&D. This conclusion remains consistent when using two different measures of R&D investment and employing propensity score matching to address the endogeneity issue. Moreover, the effect of the business environment on innovation is moderated by the size of the firm and the stock exchange on which it is listed. Our findings hold significance as governments in developing countries strive to boost firm innovation, a crucial driver of economic advancement. JEL Classification H00, O10, O30

Keywords: Provincial Competitiveness Index; provincial administration; research and development investment; corporate investment; developing countries; economic governance (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/09749101241280577 (text/html)

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:sae:emeeco:v:17:y:2025:i:2:p:286-301

DOI: 10.1177/09749101241280577

Access Statistics for this article

More articles in Global Journal of Emerging Market Economies from Emerging Markets Forum
Bibliographic data for series maintained by SAGE Publications ().