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The Effects of Regional Governance, Education, and In‐Migration on Business Performance

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  • Bach Nguyen
  • Nguyen Phuc Canh

Abstract

National institutional settings are important to small business performance. However, national institutions take time to change. So, is there any way to boost firm performance in ‘weak’ institutional environments? This study aims to answer this question by examining the role of local institutions represented by the quality of local governance, instead of the very broad national constitutional configurations. Moreover, it is suggested that regional human capital, whether locally built‐up (through local education) or externally imported (through in‐migrants) is able to strengthen the positive impacts of local governance on small business performance. A test on more than 1.3 million firm‐year observations of Vietnamese small businesses confirms the moderating effects of education and in‐migration on the relationship between local governance and firm performance.

Suggested Citation

  • Bach Nguyen & Nguyen Phuc Canh, 2020. "The Effects of Regional Governance, Education, and In‐Migration on Business Performance," Kyklos, Wiley Blackwell, vol. 73(2), pages 291-319, May.
  • Handle: RePEc:bla:kyklos:v:73:y:2020:i:2:p:291-319
    DOI: 10.1111/kykl.12223
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    Cited by:

    1. Aziz, Nusrate & Chowdhury, Murshed & Cooray, Arusha, 2022. "Why do people from wealthy countries migrate?," European Journal of Political Economy, Elsevier, vol. 73(C).
    2. Canh Phuc Nguyen & Thanh Dinh Su, 2022. "Export Dynamics and Income Inequality: New Evidence on Export Quality," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 163(3), pages 1063-1113, October.
    3. Bach Nguyen & Hoa Do & Chau Le, 2022. "How much state ownership do hybrid firms need for better performance?," Small Business Economics, Springer, vol. 59(3), pages 845-871, October.
    4. Bach Nguyen & Nguyen Phuc Canh & Su Dinh Thanh, 2021. "Institutions, Human Capital and Entrepreneurship Density," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(3), pages 1270-1293, September.
    5. Fransiskus Xaverius Lara Aba, 2021. "Institutional Change and Macroeconomic Variables in the ASEAN—Indonesia, Vietnam, and Cambodia: The Effects of a Trade War between China and USA," Economies, MDPI, vol. 9(4), pages 1-21, December.
    6. Tolu Olarewaju & Jagannadha Pawan Tamvada & Sharin McDowall, 2021. "Generalised Trust and Relation Centrism for Corruption: Evidence from Low- and Middle-Income Countries," Discussion Papers 21-01, Department of Economics, University of Birmingham.
    7. Nguyen, Canh Phuc & Nguyen, Bach & Duy Tung, Bui & Dinh Su, Thanh, 2021. "Economic complexity and entrepreneurship density: A non-linear effect study," Technological Forecasting and Social Change, Elsevier, vol. 173(C).

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