The Effect of Local Governance on Firm Productivity and Resource Allocation : Evidence from Vietnam
Governance quality plays a key role in private sector development: competent bureaucrats not only create good policies and regulations but also effectively implement them to shape the business environment. The authors exploit Vietnam’s decentraliza...
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World Bank, Washington, DC
2017
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okr-10986-262002021-05-26T09:05:19Z The Effect of Local Governance on Firm Productivity and Resource Allocation : Evidence from Vietnam Tan, Shawn W. Tran, Trang T. local governance productivity resource allocation private sector development regulation business environment decentralization corruption Governance quality plays a key role in private sector development: competent bureaucrats not only create good policies and regulations but also effectively implement them to shape the business environment. The authors exploit Vietnam’s decentralization of administrative tasks since the early 2000s to test this hypothesis. The authors examine how changes in the provincial administration of national business regulations affect firms through two channels: within firm productivity levels and resource allocation across firms. Their results show that better overall business environment has a positive impact on firm productivity, and this effect is driven by a reduction in corruption levels, the risks of land expropriation, and entry regulations. The authors also find that high productivity firms are generally more able to take advantage of the improvements in business environment. However, better implementation of entry regulations matters most for less productive firms. The authors do not find evidence for the impact of business environment quality on province-level market efficiency. 2017-03-02T23:24:03Z 2017-03-02T23:24:03Z 2017-01 Working Paper http://documents.worldbank.org/curated/en/775741487850264770/World-development-report-the-effect-of-local-governance-on-firm-productivity-and-resource-allocation-evidence-from-Vietnam http://hdl.handle.net/10986/26200 English en_US World Development Report Background Paper; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Working Paper East Asia and Pacific Vietnam |
repository_type |
Digital Repository |
institution_category |
Foreign Institution |
institution |
Digital Repositories |
building |
World Bank Open Knowledge Repository |
collection |
World Bank |
language |
English en_US |
topic |
local governance productivity resource allocation private sector development regulation business environment decentralization corruption |
spellingShingle |
local governance productivity resource allocation private sector development regulation business environment decentralization corruption Tan, Shawn W. Tran, Trang T. The Effect of Local Governance on Firm Productivity and Resource Allocation : Evidence from Vietnam |
geographic_facet |
East Asia and Pacific Vietnam |
relation |
World Development Report Background Paper; |
description |
Governance quality plays a key role in
private sector development: competent bureaucrats not only
create good policies and regulations but also effectively
implement them to shape the business environment. The
authors exploit Vietnam’s decentralization of administrative
tasks since the early 2000s to test this hypothesis. The
authors examine how changes in the provincial administration
of national business regulations affect firms through two
channels: within firm productivity levels and resource
allocation across firms. Their results show that better
overall business environment has a positive impact on firm
productivity, and this effect is driven by a reduction in
corruption levels, the risks of land expropriation, and
entry regulations. The authors also find that high
productivity firms are generally more able to take advantage
of the improvements in business environment. However, better
implementation of entry regulations matters most for less
productive firms. The authors do not find evidence for the
impact of business environment quality on province-level
market efficiency. |
format |
Working Paper |
author |
Tan, Shawn W. Tran, Trang T. |
author_facet |
Tan, Shawn W. Tran, Trang T. |
author_sort |
Tan, Shawn W. |
title |
The Effect of Local Governance on Firm Productivity and Resource Allocation : Evidence from Vietnam |
title_short |
The Effect of Local Governance on Firm Productivity and Resource Allocation : Evidence from Vietnam |
title_full |
The Effect of Local Governance on Firm Productivity and Resource Allocation : Evidence from Vietnam |
title_fullStr |
The Effect of Local Governance on Firm Productivity and Resource Allocation : Evidence from Vietnam |
title_full_unstemmed |
The Effect of Local Governance on Firm Productivity and Resource Allocation : Evidence from Vietnam |
title_sort |
effect of local governance on firm productivity and resource allocation : evidence from vietnam |
publisher |
World Bank, Washington, DC |
publishDate |
2017 |
url |
http://documents.worldbank.org/curated/en/775741487850264770/World-development-report-the-effect-of-local-governance-on-firm-productivity-and-resource-allocation-evidence-from-Vietnam http://hdl.handle.net/10986/26200 |
_version_ |
1764461131459461120 |