Corruption, provincial institutions and manufacturing firm productivity: New evidence from a transitional economy

Using data from nationwide surveys of provincial institutions and private manufacturing small medium enterprises, this study provided the first evidence of the impact of provincial institution quality and firms' participation in and intensity of corrupt activities on firm productivity in Vietna...

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Bibliographic Details
Published in:Estudios de economia 2016-12, Vol.43 (2), p.199-215
Main Authors: Tuyen, Tran Quang, Huong, Vu Van, Tinh, Doan Thanh, Hiep, Tran Duc
Format: Article
Language:English
Subjects:
Bias
Bribery
Corrupción
Corruption
Corruption in government
Dummy
Economic development
Efficiency
firm productivity
Institutions
Manufacturing
Participation
productividad de las empresas
Productivity
Provinces
Public officials
Small & medium sized enterprises-SME
Small business
SMEs
Studies
Transition economies
Vietnam
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Summary:Using data from nationwide surveys of provincial institutions and private manufacturing small medium enterprises, this study provided the first evidence of the impact of provincial institution quality and firms' participation in and intensity of corrupt activities on firm productivity in Vietnam. We found that the bribe intensity instead of whether firms bribed state officials or not (measured by a dummy variable) has a negative effect on firm productivity when the endogeneity of corruption and unobservable characteristics are controlled for. This finding contrasts to a popular belief about a paradox for East Asian countries where corruption is positively associated with firm growth.
ISSN:0304-2758
0718-5286
DOI:10.4067/s0718-52862016000200002