The impact of corruption on provincial development performance in Vietnam

A provincial analysis of formal economic institutions and private investment in Vietnam

“…According to the literature, corruption can be detriment or help for private investment. Corruption may have positive distribution if it is more predictable (Campos et al, 1999), which is likely to happen for the case of Vietnam (Dang, 2016). However, our finding does not support this argument.…”

“…Unlike the straightforward prediction of theoretical reasonings, empirical studies have shown mixed evidence about the effect of corruption on economic growth and investment. While a large body of study supports the negative effect of corruption, evidence that corruption plays a positive role still exists (see the discussion in Dang, 2016). In particular, corruption may be viewed as a lubricant to avoid onerous regulations and burdensome administrative procedures.…”

“…In case of Vietnam, there are two reasons to get further insight into the investmentaccelerating effect of anti-corruption institutions. One, for the case of Vietnam, fighting corruption is of necessity because recent empirical evidence (see, for instance, Dang, 2016) demonstrated that corruption has negative effects on economic performance. Two, the efficiency of anti-corruption programs is unclear.…”

Corruption and the business environment in Vietnam: Implications from an empirical study

“…suggest that corruption undermines Vietnam's economic performance. Corruption has a negative impact on private investment, employment, and per capita income at the provincial level (Dang, 2016). Rand and Tarp (2012), drawing on a survey of small and medium-sized enterprises for the 2005-2007 period, find that bribery hurts firm performance, whereas CIEM, et al (2012) show that bribe-paying small and medium-sized enterprises do not grow significantly faster or slower than their law-abiding counterparts but are significantly more likely to exit the market.…”

“…Despite improvement over the past years, corruption is still considered widespread throughout the country, and Vietnam still lags behind other Asian countries regarding corruption control and most governance indicators (Transparency International, 2012). International studies suggest that corruption affects the business environment both positively and negatively (e.g., Dang, 2016;Méon & Weill, 2010;Nguyen, Doan, Nguyen, & Tran-Nam, 2016;Welter & Smallbone, 2014). However, relatively little literature has been published on corruption in Vietnam, especially with respect to its effect on the business environment.…”