Corruption, business environment, and firm growth in Vietnam

Phuoc Vu Ha and Michael Frömmel

International Journal of Finance & Economics, 2023, vol. 28, issue 3, 2512-2529

Abstract: Corruption is fought by governments in both developing and developed countries because it can harm economic development. However, it has raised the question of why it still exists at a high level in emerging markets like Vietnam. With the data from surveys of the World Bank, Vietnam Competitive Initiative, and Vietnam Chamber of Commerce and Industry, this study provides details of the impact of corruption on firm growth and the effect of business environment on corruption at the firm‐perceived level across different firm ownership identities, namely state‐owned enterprise (SOE), shareholding enterprise (SHE), and foreign‐owned enterprise (FOE), in Vietnam. We demonstrate that corruption has a negative effect on the growth of firms with SHEs, FOEs, and non‐SOEs but a positive effect in SOEs. We also document that the difference in the levels of corruption across different provinces can be influenced by the quality of the local business environment, but again, those impacts are heterogeneous in firms with different ownership identities.

Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.1002/ijfe.2547

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:wly:ijfiec:v:28:y:2023:i:3:p:2512-2529

Ordering information: This journal article can be ordered from
http://jws-edcv.wile ... PRINT_ISSN=1076-9307

Access Statistics for this article

International Journal of Finance & Economics is currently edited by Mark P. Taylor, Keith Cuthbertson and Michael P. Dooley

More articles in International Journal of Finance & Economics from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().