State ownership, quality of sub-national governance, and total factor productivity of firms in Vietnam

Total Factor Productivity Growth of Vietnamese Enterprises by Sector and Region: Evidence from Panel Data Analysis

“…When measuring TFP for firms across broad industries or sectors, a simple production function consisting of two inputs, capital and labor, and an output factor of value-added, is often used because these are factors that most generally reflect inputs and outputs (Tan and Virabhak 1998;Felipe 1999;Giang et al 2018Giang et al , 2019Oanh 2019;Oanh 2019). When measured within specific industries or firms, inputs can be extended beyond capital and labor (Bao 2014;Le et al 2021), or outputs can be measured by the number of products .…”

“…As it was appropriate to the data source being collected, this study used the parameter approach and Cobb-Douglas production function estimation to determine TFPG because it provides an equational relationship regarding outputs and inputs, as discussed above. The elasticity of the inputs in the Cobb-Douglas function allows for easier interpretation than the production translog function and is still in common use (Giang et al 2018(Giang et al , 2019Oanh 2019;Le et al 2021). As this study uses estimates for enterprise sectors and enterprise in regions, the enterprises examined do not belong to a specific industry, and the most common factors that reflect inputs are capital and labor.…”

“…Previous TFP and TFPG studies in Vietnam have addressed various fields and have been diverse in their scope. These include measuring TFP in agriculture (Bao 2014;Giang et al 2019); TFPG in the coal industry (Phuong 2018); TFP in air transport (Quang 2017); TFPG among modes of transport ; TFP in the food industry (Long 2020), TFP in the manufacturing sectors (Huong 2017;; TPF for foreign direct investment enterprises (Hien et al 2019) and state ownership (Le et al 2021). In addition, there are a number of studies examining factors affecting TPF, such as: the impact of the investment climate on TFP in the agricultural sector (Trung and Cuong 2010); the impact of investment climate on the TFP of manufacturing firms (Giang et al 2018); the impact of innovation on the TFP of small and medium-sized enterprises (Hue et al 2019); the determinants of TFP in manufacturing industry (Oanh 2019).…”

“…These studies are mainly focused on specific industries or specific ownership sectors. The methods used include both the parametric approach (Trung and Cuong 2010;Quang 2017;Giang et al 2018Giang et al , 2019Oanh 2019;Le et al 2021) and the nonparametric approach (Coelli and Rao 2005;Kong and Tongzon 2006;Wu 2011;Bao 2014;Phuong 2018). In addition, some recent studies also utilized a semi-parametric approach (Huong 2017;.…”

“…In addition, some recent studies also utilized a semi-parametric approach (Huong 2017;. Most of the parametric and non-parametric approaches use the Ordinary Least Square (OLS) regression technique to estimate the parameters for the TFPG calculation or are based on OLS such as robust regression (Bao 2014), Fixed Effect Models (FEM), and the Random Effects Model (REM) for panel data (Giang et al 2019;Le et al 2021). The semi-parametric approach uses the estimation technique of Olley and Pakes (1996) (Giang et al 2018) or the procedure of Ackerberg et al (2006) .…”