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From Efficiency Analyses to Policy Implications: a Multilevel Hierarchical Linear Model Approach

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  • Thuy T. T. Dao
  • Xuan T. T. Mai
  • Thanh Ngo
  • Tu Le
  • Huong Ho

Abstract

This paper examines the key factors that influenced the cost efficiency of 7,633 Vietnamese manufacturing firms during 2010–2016 via a hierarchical linear modelling (HLM) approach. The main reason for using HLM in this case is that observations in the same group may not be independent from each other (e.g. firms operate within the same city), and some variables may not vary across those observations. Although most of the findings are consistent with previous studies, the statistical power of our HLM model is higher than that of the traditional single-level analysis, suggesting that HLM can provide better analytical insights. The results further indicate a case for cities or provinces pursuing different policies aimed at improving the performance of their local firms.

Suggested Citation

  • Thuy T. T. Dao & Xuan T. T. Mai & Thanh Ngo & Tu Le & Huong Ho, 2021. "From Efficiency Analyses to Policy Implications: a Multilevel Hierarchical Linear Model Approach," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 28(3), pages 457-470, September.
    • Handle: RePEc:taf:ijecbs:v:28:y:2021:i:3:p:457-470
    DOI: 10.1080/13571516.2021.1981750
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    Cited by:

    1. Tu D. Q. Le & Thanh Ngo & Tin H. Ho & Dat T. Nguyen, 2022. "ICT as a Key Determinant of Efficiency: A Bootstrap-Censored Quantile Regression (BCQR) Analysis for Vietnamese Banks," IJFS, MDPI, vol. 10(2), pages 1-15, June.

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