IDEAS home Printed from https://ideas.repec.org/p/ris/adbewp/023110.html

Business Climate, Economic Complexity, and Performance at the Provincial Level in Viet Nam

Author

Listed:
  • Ari Kokko

    (Copenhagen Business School)

  • Nguyen Tien Thong

    (Nha Trang University)

  • Katariina Nilsson Hakkala

    (Asian Development Bank)

Abstract

This study explores the impact of subnational institutions on Viet Nam’s provincial manufacturing sector, comparing foreign-invested and domestic firms using a two-step difference GMM model with data from 63 provinces (2006–2020). Results show that changes in subnational institutions, measured by the Provincial Competitiveness Index, have little effect on economic complexity, revenues, employment, productivity, or firm size. Unexpectedly, weaker governance in areas like land access, transparency and legal institutions sometimes leads to better performance. This weak connection persists across all samples, periods, controls, and estimation methods, likely due to the dominance of foreign-invested companies and their limited interaction with local firms, which impacts overall firm development.

Suggested Citation

  • Ari Kokko & Nguyen Tien Thong & Katariina Nilsson Hakkala, 2026. "Business Climate, Economic Complexity, and Performance at the Provincial Level in Viet Nam," ADB Economics Working Paper Series 856, Asian Development Bank.
    • Handle: RePEc:ris:adbewp:023110
    DOI: 10.22617/WPS260325-2
    as

    Download full text from publisher

    File URL: https://www.adb.org/publications/business-climate-economic-complexity-performance-provincial-viet-nam
    File Function: Full text
    Download Restriction: None
    File URL: https://libkey.io/10.22617/WPS260325-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • L53 - Industrial Organization - - Regulation and Industrial Policy - - - Enterprise Policy
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:adbewp:023110. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Orlee Velarde (email available below). General contact details of provider: https://edirc.repec.org/data/eradbph.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.