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Local governance and business performance in Vietnam: the transaction costs’ perspective

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  • Bach Nguyen
  • Tomasz Mickiewicz
  • Jun Du

Abstract

Local governance and business performance in Vietnam: the transaction costs’ perspective. Regional Studies. This paper adopts a transaction costs’ perspective to explain why the growth of small and medium-sized enterprises (SMEs) may vary across regions of an emerging economy. Furthermore, it is argued that young and small firms gain more from the improvement of local governance than do old and large firms. In addition, depending on the institutional history, SMEs will respond differently to the incentives provided by local governance. Analysing more than 300,000 SMEs in Vietnam during 2006–12, it is shown that higher-quality local governance positively influences local SME revenue growth; this effect is stronger for young and small firms, and matters more where institutional history suggests there is less support for entrepreneurship.

Suggested Citation

  • Bach Nguyen & Tomasz Mickiewicz & Jun Du, 2018. "Local governance and business performance in Vietnam: the transaction costs’ perspective," Regional Studies, Taylor & Francis Journals, vol. 52(4), pages 542-557, April.
    • Handle: RePEc:taf:regstd:v:52:y:2018:i:4:p:542-557
    DOI: 10.1080/00343404.2017.1341625
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    Citations

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    Cited by:

    1. Bach Nguyen, 2022. "Small business investment: The importance of financing strategies and social networks," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(3), pages 2849-2872, July.
    2. Ajax Persaud & Javid Zare, 2023. "Institutional varieties, governance quality, and firm‐level innovation in emerging economies: Case of India," Growth and Change, Wiley Blackwell, vol. 54(1), pages 234-259, March.
    3. 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.
    4. Jun Du & Bach Nguyen, 2022. "Cognitive financial constraints and firm growth," Small Business Economics, Springer, vol. 58(4), pages 2109-2137, April.
    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. 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).
    7. Bach Nguyen, 2022. "Internal migration and earnings: Do migrant entrepreneurs and migrant employees differ?," Papers in Regional Science, Wiley Blackwell, vol. 101(4), pages 901-944, August.
    8. Bach Nguyen & Nguyen Phuc Canh, 2021. "Formal and informal financing decisions of small businesses," Small Business Economics, Springer, vol. 57(3), pages 1545-1567, October.
    9. Jun Du & Bach Nguyen, 2024. "The ‘play’ of institutions and firm investment: Evidence from a transition economy," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(3), pages 2740-2765, July.
    10. Nguyen, Bach, 2021. "Local institutions, external finance and investment decisions of small businesses in Vietnam," Economic Systems, Elsevier, vol. 45(3).
    11. Mai, Nhat Chi, 2021. "Determinants of successful adoption of the Balanced Scorecard in Vietnamese small and medium-sized enterprises," OSF Preprints 5hx2r, Center for Open Science.
    12. 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.
    13. Nguyen, Phuc Canh & Nguyen, Bach & Thanh, Su Dinh, 2022. "The importance of export diversification for national entrepreneurship density," Structural Change and Economic Dynamics, Elsevier, vol. 62(C), pages 114-129.

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