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Firms and Regional Favoritism

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  • Vu, Tien Manh
  • Yamada, Hiroyuki

Abstract

We examine formal firm behavior in response to regional favoritism by top-ranked politicians using a balanced panel of 444 rural districts (yearly observations) in Vietnam during 2000 to 2011 and census microdata of firms, politicians’ home towns, and climate and population microdata. The study finds that the number of firms and aggregated employment of firms increase in the home town districts of politicians after they resume office. The findings suggest that regional favoritism in a single–party system maintains the continuous development of firms in politicians’ home town districts and widens the gaps among rural districts.

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  • Vu, Tien Manh & Yamada, Hiroyuki, 2017. "Firms and Regional Favoritism," AGI Working Paper Series 2017-16, Asian Growth Research Institute.
    • Handle: RePEc:agi:wpaper:00000136
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    Cited by:

    1. Fernando Antonio Ignacio González & Lara Sofia Cantero & Pablo Ariel Szyszko, 2022. "Favoritismo Regional en Argentina," Working Papers 199, Red Nacional de Investigadores en Economía (RedNIE).
    2. Francis Osei-Tutu & Laurent Weill, 2024. "Regional favoritism in access to credit," Public Choice, Springer, vol. 200(1), pages 293-321, July.
    3. 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.
    4. 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.
    5. Vu, Tien Manh & Yamada, Hiroyuki, 2020. "The persisting legacies of imperial elites among contemporary top-ranked Vietnamese politicians," MPRA Paper 100861, University Library of Munich, Germany.
    6. Fernando Antonio Ignacio González & Lara Sofía Cantero & Pablo Ariel Szyszko, 2023. "Inequality and economic activity under regional favoritism: evidence from Argentina," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 43(2), pages 343-361, August.

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    More about this item

    Keywords

    Firms; Favoritism; Politician; Rural; Vietnam; D22; D25; D72; R11; Z1; P28; O17;
    All these keywords.

    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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