From central planning toward a market economy: The role of ownership and competition in Vietnamese firmsâ€™ productivity
Fabio Pieri (),
Le Manh-Duc () and
Enrico Zaninotto ()
No 2018/01, DEM Working Papers from Department of Economics and Management
This paper examines the role of ownership and market competition in Vietnamese firmsâ€™ total factor productivity (TFP) from 2001 to 2011. Making use of a large panel dataset of Vietnamese manufacturing firms, we find that, on average, both foreign-owned enterprises (FOEs) and state-owned enterprises (SOEs) have performed better than privately owned enterprises (POEs) in terms of their TFP levels. However, while FOEs ranked the highest in terms of TFP in the period 2001â€“2006, SOEs â€œclosed the gapâ€ with FOEs in the period 2007â€“2011. SOEsâ€™ good performance may be the result of the state-led development policies undertaken during the 2000s. We also find that market competition has been effective in enhancing average firm productivity and reducing the gaps in efficiency across firms of different ownership types. Based on these results, we compare Vietnamâ€™s transition path with those followed by other countries.
Keywords: Ownership; market competition; TFP; Vietnamese manufacturing; transition economies (search for similar items in EconPapers)
JEL-codes: D24 L33 O53 N60 P27 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com, nep-eff, nep-sea, nep-tid and nep-tra
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Persistent link: https://EconPapers.repec.org/RePEc:trn:utwprg:2018/01
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