Determinants of Capital Resource Productivity in the Enterprise Sector in Vietnam

DOI

10.2991/aebmr.k.211119.006How to use a DOI?

Keywords

Capital resource; productivity; enterprise sector

Abstract

Research purpose:

This paper seeks to address the question of potential determinants for capital resource productivity in the enterprise sector in Vietnam.

Research motivation:

Since 2000, the enterprise sector in Vietnam starts to grow rapidly; however, capital resource productivity is on the declining trend.

Research design, approach and method:

At the sectoral level, the determinants of capital resource productivity are identified to include the sector’s size of capital resource, FDI intensity, industrial agglomeration, type of enterprises by size, size of population and quality of local economic governance. Using the generalized least square method, the empirical study is conducted at the local level with all 63 provinces nationwide in the period from 2006 to 2015.

Main findings:

Regression findings reveal that the proportion of FDI enterprises, the average size of FDI enterprises, industrial agglomeration, the proportion of large enterprises and the population size all have positive effects on capital resource productivity while the size of capital resource has a negative impact. For the different components that are related to the quality of local economic governance, improvement in informal charges, time costs of regulatory compliance, labor training, land access and tenure security increase capital resource productivity while improvement in entry costs for new firms lowers it.

Practical/managerial implications:

The implication of these findings calls for the need of attracting FDI to bring in new and advanced technologies, encourage the development of large enterprises, facilitate the formation of industrial zones and parks, effectively implement labor training programs and continuously improve local economic governance.

Copyright

© 2021 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

Download article (PDF)

TY  - CONF
AU  - Dao Thi Bich THUY
PY  - 2021
DA  - 2021/12/07
TI  - Determinants of Capital Resource Productivity in the Enterprise Sector in Vietnam
BT  - Proceedings of the International Conference on Emerging Challenges: Business Transformation and Circular Economy (ICECH 2021)
PB  - Atlantis Press
SP  - 52
EP  - 60
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.211119.006
DO  - 10.2991/aebmr.k.211119.006
ID  - THUY2021
ER  -