Growth strategy with social capital, human capital and physical capital - theory and evidence: the case of Vietnam

Cuong Le Van (), Anh Nguyen (), Ngoc-Minh Nguyen and Michel Simioni ()
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Cuong Le Van: IPAG Business School, CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, Academy of Policy and Development - Partenaires INRAE, TIMAS - Institute of Mathematics and Applied Science, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique
Ngoc-Minh Nguyen: Development and Policies Research Center, UN - Université de Nantes
Michel Simioni: UMR MOISA - Marchés, Organisations, Institutions et Stratégies d'Acteurs - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - INRA - Institut National de la Recherche Agronomique - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier

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Abstract: In this paper, we develop a theoretical model to explain the impact of social capital (defined at the firm level) on individual firm performance and derive a critical optimal threshold for firms to invest in social capital. The theoretical model we propose reveals how social capital, human capital, and physical capital simultaneously affect firm performance under the main assumption of a decreasing function of social capital on unit cost of physical capital. Our theoretical model is then estimated using unique firm-level longitudinal data from Vietnam for the period 2005–2015. Using a control function approach in a quantile regression framework, we attempt to establish the causal impact of social capital on firm performance. Our empirical results point to a range of revenue in which investment in social capital is efficient and to evidence suggesting that the role of social capital decreases when firms become richer.

Date: 2018
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Published in Journal of Public Economic Theory, 2018, 20 (5), pp.768-787. ⟨10.1111/jpet.12305⟩

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Related works:
Journal Article: Growth strategy with social capital, human capital and physical capital—Theory and evidence: The case of Vietnam (2018)
Working Paper: Growth strategy with social capital, human capital and physical capital - theory and evidence: the case of Vietnam (2018)
Working Paper: Growth strategy with social capital, human capital and physical capital - theory and evidence: the case of Vietnam (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:pseptp:hal-02623135

DOI: 10.1111/jpet.12305

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