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Corruption, provincial institutions and manufacturing firm productivity.New evidence from a transitional economy

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Listed:
  • Tran Quang Tuyen
  • Vu Van Huong
  • Doan Thanh Tinh
  • Tran Duc Hiep

    ()

Abstract

Using data from nationwide surveys of provincial institutions and private manufacturing small medium enterprises, this study provided the first evidence of the impact of provincial institution quality and firms’ participation in and intensity of corrupt activities on firm productivity in Vietnam. We found that the bribe intensity instead of whether firms bribed state officials or not (measured by a dummy variable) has a negative effect on firm productivity when the endogeneity of corruption and unobservable characteristics are controlled for. This finding contrasts to a popular belief about a paradox for East Asian countries where corruption is positively associated with firm growth.

Suggested Citation

  • Tran Quang Tuyen & Vu Van Huong & Doan Thanh Tinh & Tran Duc Hiep, 2016. "Corruption, provincial institutions and manufacturing firm productivity.New evidence from a transitional economy," Estudios de Economia, University of Chile, Department of Economics, vol. 43(2 Year 20), pages 199-215, December.
  • Handle: RePEc:udc:esteco:v:43:y:2016:i:2:p:199-215
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    File URL: http://www.estudiosdeeconomia.uchile.cl/index.php/EDE/article/viewFile/44116/46128
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    References listed on IDEAS

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    Cited by:

    1. Tran, Tuyen Quang & Tran, Anh Lan & Pham, Thai Minh & Van Vu, Huong, 2018. "Local governance and occupational choice among young people: First evidence from Vietnam," Children and Youth Services Review, Elsevier, vol. 86(C), pages 21-31.
    2. Quang Tran, Tuyen & Doan, Tinh & Vu, Huong & Nguyen, Hien, 2018. "The Impact of Public Governance on Household Income: A Quantile Panel Analysis," MPRA Paper 90415, University Library of Munich, Germany, revised 08 Mar 2018.
    3. repec:kap:jbuset:v:159:y:2019:i:1:d:10.1007_s10551-018-3793-6 is not listed on IDEAS

    More about this item

    Keywords

    Corruption; firm productivity; SMEs; Vietnam;

    JEL classification:

    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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