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Firm Efficiency in a Transitional Economy: Evidence from Vietnam

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  • Thi Bich Tran
  • R. Quentin Grafton
  • Tom Kompas

Abstract

The paper examines efficiency performance of the non‐state small and medium manufacturing industries in a transitional and developing economy. Using firm level data in Vietnam from 1996 and 2001, cross‐sectional models are estimated using the stochastic frontier method. The results show a considerable variation in efficiency levels among firms and that a greater use of family labor and a metropolitan location are associated with improvement in technical efficiency. The results indicate few benefits from direct government financial and non‐financial assistance to businesses.

Suggested Citation

  • Thi Bich Tran & R. Quentin Grafton & Tom Kompas, 2008. "Firm Efficiency in a Transitional Economy: Evidence from Vietnam," Asian Economic Journal, East Asian Economic Association, vol. 22(1), pages 47-66, March.
    • Handle: RePEc:bla:asiaec:v:22:y:2008:i:1:p:47-66
    DOI: 10.1111/j.1467-8381.2008.00268.x
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    References listed on IDEAS

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    1. Teerawat Charoenrat & Charles Harvie, 2017. "The Performance of Thai Manufacturing SMEs: Data Envelopment Analysis (DEA) Approach," Global Business Review, International Management Institute, vol. 18(5), pages 1178-1198, October.
    2. Power, Brendan & Cacho, Oscar J, 2014. "Identifying risk-efficient strategies using stochastic frontier analysis and simulation: An application to irrigated cropping in Australia," Agricultural Systems, Elsevier, vol. 125(C), pages 23-32.
    3. Le, Viet & Vu, Xuan-Binh (Benjamin) & Nghiem, Son, 2018. "Technical efficiency of small and medium manufacturing firms in Vietnam: A stochastic meta-frontier analysis," Economic Analysis and Policy, Elsevier, vol. 59(C), pages 84-91.
    4. Kashika Arora & Areej A. Siddiqui & Biswajit Nag, 2020. "Devevloping Linkages Between Export Guarantees And Technical Efficiency Of Indian Firms," Working Papers 2045, Indian Institute of Foreign Trade.
    5. Ajit Karnik & Swati Raju, 2015. "State Fiscal Capacity and Tax Effort: Evidence for Indian States," South Asian Journal of Macroeconomics and Public Finance, , vol. 4(2), pages 141-177, December.
    6. Nguyen, Thi Tuyet Mai, 2017. "An examination of independent directors in Vietnam," OSF Preprints ay6dv, Center for Open Science.
    7. Phu Nguyen-Van & Tuyen Tiet & Quoc Tran-Nam, 2024. "Synergy in environmental compliance, innovation and export on SMEs' growth," Working Papers hal-04441426, HAL.
    8. Hery Purnomo Tunggal & Tati Suhartati Joesron, 2019. "Technical Efficiency Analysis Of Indonesian Small And Micro Industries: A Stochastic Frontier Approach," Working Papers in Economics and Development Studies (WoPEDS) 201903, Department of Economics, Padjadjaran University, revised Nov 2019.
    9. Souksavanh VIXATHEP & Nobuaki MATSUNAGA, 2015. "Entrepreneurial Human and Social Capital in Small Businesses in Vietnam - An Extended Analysis -," GSICS Working Paper Series 29, Graduate School of International Cooperation Studies, Kobe University.
    10. Teerawat Charoenrat & Charles Harvie, 2012. "Technical Efficiency of Thai Manufacturing SMEs: a Comparative Study of North-eastern Provinces," Economics Working Papers wp12-03, School of Economics, University of Wollongong, NSW, Australia.
    11. Shamsuzzoha & Makoto Tanaka, 2021. "The role of human capital on the performance of manufacturing firms in Bangladesh," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(1), pages 21-33, January.
    12. Mariarosaria Agostino & Sabrina Ruberto & Francesco Trivieri, 2018. "Lasting lending relationships and technical efficiency. Evidence on European SMEs," Journal of Productivity Analysis, Springer, vol. 50(1), pages 25-40, October.
    13. Arpita Ghose & Chandrima Chakraborti, 2013. "The Relative Role of Imports and Exports in Explaining Productivity of Indian Bio-Pharmaceutical Firms: Evidence from Non Parametric Data Envelopment Analysis," Foreign Trade Review, , vol. 48(2), pages 165-201, May.
    14. Charoenrat, Teerawat & Harvie, Charles, 2014. "The efficiency of SMEs in Thai manufacturing: A stochastic frontier analysis," Economic Modelling, Elsevier, vol. 43(C), pages 372-393.

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