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Firm Efficiency in a Transitional Economy: Evidence from Vietnam


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


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. Copyright 2008 The Authors.

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  • 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

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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. 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.
    3. 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.
    4. 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.

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