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Rent-seekers' lost El Dorado: Vietnam's financial turmoil, 2007-2013

Author

Listed:
  • Quan-Hoang Vuong
  • Nancy K. Napier
  • Tran Tri Dung

Abstract

In this investigation, we examined 256 cases of financial failure and fraud in Vietnam’s chaotic years from 2007 to 2013. Categorical data analyses suggest that the rent-seeking approach, or resource-based orientation, alone does not help explain the outcome of a business intention while the association between Orientation and Approach is the best-fit predictor. Rampant financial collapse not only increases the cost of funds but also erodes trust in the economy. Entrepreneurship development and creativity capacity building, in light of this, are necessary to improve socio-economic conditions and the environment. In this manuscript, we also introduce intuitive and cognitive factors to predict ex-ante outcome of a financing scheme.

Suggested Citation

  • Quan-Hoang Vuong & Nancy K. Napier & Tran Tri Dung, 2013. "Rent-seekers' lost El Dorado: Vietnam's financial turmoil, 2007-2013," Working Papers CEB 13-020, ULB -- Universite Libre de Bruxelles.
  • Handle: RePEc:sol:wpaper:2013/143808
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    References listed on IDEAS

    as
    1. Quan Hoang Vuong & Nancy K. Napier & Tri Dung Tran, 2013. "A categorical data analysis on relationships between culture, creativity and business stage: the case of Vietnam," International Journal of Transitions and Innovation Systems, Inderscience Enterprises Ltd, vol. 3(1), pages 4-24.
    2. Quan-Hoang Vuong & Tran Tri Dung, 2009. "The Cultural Dimensions of the Vietnamese Private Entrepreneurship," Working Papers CEB 09-027.RS, ULB -- Universite Libre de Bruxelles.
    3. Tollison, Robert D, 1982. "Rent Seeking: A Survey," Kyklos, Wiley Blackwell, vol. 35(4), pages 575-602.
    4. Quan-Hoang Vuong & Nancy K. Napier & Donaldine E. Samson & Hong Kong Nguyen, 2013. "Empirical Evidence on Relationships between Ex Ante Innovation Pursuit and Post-M&A Performance in the Vietnamese M&A Industry, 2005-2012," Working Papers CEB 13-009, ULB -- Universite Libre de Bruxelles.
    5. David S. Scharfstein & Jeremy C. Stein, 2000. "The Dark Side of Internal Capital Markets: Divisional Rent-Seeking and Inefficient Investment," Journal of Finance, American Finance Association, vol. 55(6), pages 2537-2564, December.
    6. repec:bla:joares:v:18:y:1980:i:1:p:109-131 is not listed on IDEAS
    7. repec:bla:joares:v:22:y:1984:i::p:59-82 is not listed on IDEAS
    8. Murphy, Kevin M & Shleifer, Andrei & Vishny, Robert W, 1993. "Why Is Rent-Seeking So Costly to Growth?," American Economic Review, American Economic Association, vol. 83(2), pages 409-414, May.
    9. Krueger, Anne O, 1974. "The Political Economy of the Rent-Seeking Society," American Economic Review, American Economic Association, vol. 64(3), pages 291-303, June.
    10. Vu Dang Le Nguyen & Nancy K. Napier & Quan-Hoang Vuong, 2012. "It Takes Two to Tango: Entrepreneurship and Creativity in Troubled Times – Vietnam 2012," Working Papers CEB 12-022, ULB -- Universite Libre de Bruxelles.
    11. Quan-Hoang Vuong & Nancy K. Napier, 2012. "Coffee Filters and Creativity: The Value of Multiple Filters in the Creative Process," Working Papers CEB 12-036, ULB -- Universite Libre de Bruxelles.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Financial frauds; rent-seeking; creativity; economic transition; Vietnam;

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • P27 - Economic Systems - - Socialist Systems and Transition Economies - - - Performance and Prospects

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