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Firms and regional favouritism

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  • Tien Manh Vu
  • Hiroyuki Yamada

Abstract

Using an unbalanced panel of 539 Vietnamese districts from 2000 to 2010 and the corresponding politicians’ profiles, we examine firm behaviour in response to favouritism by top‐ranking politicians towards their districts of birth. Results show that the number of firms tend to increase in the home districts of politicians after they assume office. This favouritism is particularly pronounced for private domestic firms, construction firms and rural areas. However, state‐owned firms are indifferent. We discuss the non‐response of state‐owned firms, potential mechanisms and channels behind the statistical results.

Suggested Citation

  • Tien Manh Vu & Hiroyuki Yamada, 2021. "Firms and regional favouritism," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 29(4), pages 711-734, October.
  • Handle: RePEc:wly:ectrin:v:29:y:2021:i:4:p:711-734
    DOI: 10.1111/ecot.12308
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    Cited by:

    1. Yamada, Hiroyuki & Vu, Tien Manh, 2021. "Perception of Bribery, an Anti-Corruption Campaign, and Health Service Utilization in Vietnam," MPRA Paper 108883, University Library of Munich, Germany.
    2. Tien Manh Vu & Hiroyuki Yamada, 2020. "Persistent legacy of the 1075-1919 Vietnamese imperial examinations in contemporary quantity and quality of education," Keio-IES Discussion Paper Series 2020-012, Institute for Economics Studies, Keio University.
    3. Vu, Tien Manh & Yamada, Hiroyuki, 2020. "The persisting legacies of imperial elites among contemporary top-ranked Vietnamese politicians," AGI Working Paper Series 2020-13, Asian Growth Research Institute.

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    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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