The Effect of Local Governance on Firm Productivity and Resource Allocation : Evidence from Vietnam
Governance quality plays a key role in private sector development: competent bureaucrats not only create good policies and regulations, but also effectively implement them to shape the business environment. This paper exploit Vietnam’s decentraliza...
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| Format: | Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/897751498567735812/The-effect-of-local-governance-on-firm-productivity-and-resource-allocation-evidence-from-Vietnam http://hdl.handle.net/10986/27622 |
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okr-10986-276222021-06-08T14:42:47Z The Effect of Local Governance on Firm Productivity and Resource Allocation : Evidence from Vietnam Tan, Shawn W. Tran, Trang T. LOCAL GOVERNMENT PRODUCTIVITY RESOURCE ALLOCATION BUSINESS ENVIRONMENT GOVERNANCE COMPETITIVENESS CORRUPTION EXPROPRIATION RISK REGULATION Governance quality plays a key role in private sector development: competent bureaucrats not only create good policies and regulations, but also effectively implement them to shape the business environment. This paper exploit Vietnam’s decentralization of administrative tasks since the early 2000s to test this hypothesis. The paper examines how changes in the provincial administration of national business regulations affect firms through two channels: within-firm productivity levels and resource allocation across firms. The results show that better overall business environment has a positive impact on firm productivity, and this effect is driven by a reduction in corruption levels, the risks of land expropriation, and entry regulations. The analysis also finds that high-productivity firms are generally better able to take advantage of improvements in the business environment. However, better implementation of entry regulations matters most for less productive firms. The study does not find evidence for the impact of business environment quality on province-level market efficiency. 2017-07-18T22:12:36Z 2017-07-18T22:12:36Z 2017-06 Working Paper http://documents.worldbank.org/curated/en/897751498567735812/The-effect-of-local-governance-on-firm-productivity-and-resource-allocation-evidence-from-Vietnam http://hdl.handle.net/10986/27622 English en_US Policy Research Working Paper;No. 8118 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper East Asia and Pacific Vietnam |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
LOCAL GOVERNMENT PRODUCTIVITY RESOURCE ALLOCATION BUSINESS ENVIRONMENT GOVERNANCE COMPETITIVENESS CORRUPTION EXPROPRIATION RISK REGULATION |
| spellingShingle |
LOCAL GOVERNMENT PRODUCTIVITY RESOURCE ALLOCATION BUSINESS ENVIRONMENT GOVERNANCE COMPETITIVENESS CORRUPTION EXPROPRIATION RISK REGULATION Tan, Shawn W. Tran, Trang T. The Effect of Local Governance on Firm Productivity and Resource Allocation : Evidence from Vietnam |
| geographic_facet |
East Asia and Pacific Vietnam |
| relation |
Policy Research Working Paper;No. 8118 |
| description |
Governance quality plays a key role in
private sector development: competent bureaucrats not only
create good policies and regulations, but also effectively
implement them to shape the business environment. This paper
exploit Vietnam’s decentralization of administrative tasks
since the early 2000s to test this hypothesis. The paper
examines how changes in the provincial administration of
national business regulations affect firms through two
channels: within-firm productivity levels and resource
allocation across firms. The results show that better
overall business environment has a positive impact on firm
productivity, and this effect is driven by a reduction in
corruption levels, the risks of land expropriation, and
entry regulations. The analysis also finds that
high-productivity firms are generally better able to take
advantage of improvements in the business environment.
However, better implementation of entry regulations matters
most for less productive firms. The study does not find
evidence for the impact of business environment quality on
province-level market efficiency. |
| format |
Working Paper |
| author |
Tan, Shawn W. Tran, Trang T. |
| author_facet |
Tan, Shawn W. Tran, Trang T. |
| author_sort |
Tan, Shawn W. |
| title |
The Effect of Local Governance on Firm Productivity and Resource Allocation : Evidence from Vietnam |
| title_short |
The Effect of Local Governance on Firm Productivity and Resource Allocation : Evidence from Vietnam |
| title_full |
The Effect of Local Governance on Firm Productivity and Resource Allocation : Evidence from Vietnam |
| title_fullStr |
The Effect of Local Governance on Firm Productivity and Resource Allocation : Evidence from Vietnam |
| title_full_unstemmed |
The Effect of Local Governance on Firm Productivity and Resource Allocation : Evidence from Vietnam |
| title_sort |
effect of local governance on firm productivity and resource allocation : evidence from vietnam |
| publisher |
World Bank, Washington, DC |
| publishDate |
2017 |
| url |
http://documents.worldbank.org/curated/en/897751498567735812/The-effect-of-local-governance-on-firm-productivity-and-resource-allocation-evidence-from-Vietnam http://hdl.handle.net/10986/27622 |
| _version_ |
1764465500734095360 |