Dao Van Le and Tuyen Quang Tran
This study explores the effect of local budget retention rate changes (RER) on total factor productivity (TFP) and its components in Vietnam.
Abstract
Purpose
This study explores the effect of local budget retention rate changes (RER) on total factor productivity (TFP) and its components in Vietnam.
Design/methodology/approach
The study employs a two-system generalized method of moments (GMM) estimator and data from 2012 to 2019 across all 63 provinces/cities of Vietnam.
Findings
The study finds that local budget retention rates significantly influence public investment, affecting scale and allocation efficiency. The reallocation of budgets between regions and from the central government to local levels incurs certain costs, often resulting in economically robust provinces experiencing reductions in their retention rates.
Practical implications
Recognizing the challenges of immediate structural budget changes due to cultural and historical factors, the study suggests a more gradual policy approach. It emphasizes the importance of policy predictability, as abrupt reductions in the retention rate lead to higher costs than gradual reductions, thus implementing budget policies with a clearer timeline. This study provides insight into local budget allocation regimes and their impact on productivity in transitioning countries.
Originality/value
First, the study provides fresh evidence of the impact of retention rate changes on TFP and its components in Vietnam. Second, the study provides insights into the mechanisms of the nexus of increased budget spending, capital efficiency and, most importantly, attaining improvement in education. We also offer further insights into inefficient budget allocation agents in Vietnam, especially in large cities, which should alert scholars to explore this topic further in the future.
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Binh Tran-Nam, Cuong Le-Van, Van Pham-Hoang and Thai-Ha Le
Huy Van Le, Le Chi Cong and Mark A.A.M. Leenders
This research aims to explore the role of awareness of harm and responsibility for environmental protection in reducing pollution from single-use plastic bags (SPBs) in coastal…
Abstract
Purpose
This research aims to explore the role of awareness of harm and responsibility for environmental protection in reducing pollution from single-use plastic bags (SPBs) in coastal communities (CCs). To this end, this study develops and tests a unique model that explains residents’ intention to reduce the use of SPBs in coastal regions.
Design/methodology/approach
A questionnaire was used to collect data from 721 coastal residents in Vietnam. Structural equation modeling and moderation analysis were applied to test the proposed hypotheses.
Findings
The results show that awareness of the impact of SPBs on the environment and human health and awareness of the responsibility to protect the coastal environment significantly affect attitudes and intentions to reduce the use of SPBs. Moreover, such awareness of responsibility strengthens the attitude-intention relationship.
Practical implications
The findings suggest that CCs should not receive a lower priority in campaigns and efforts to reduce SPBs. In this regard, providing residents with free environmentally friendly bags and education programs on the impact of SPBs could be implemented.
Originality/value
CCs are directly impacted by pollution from SPBs. However, little is known about how this affects their polluting behavior. This study shows that CCs are not immune to polluting behaviors and that SPBs can be significant among residents. It also demonstrates that awareness of harm and feeling responsible for the environment are essential drivers of (intended) sustainable behaviors.
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Huu Minh Nguyen, Thi Hong Tran and Thi Thanh Loan Tran
“The world needs science, science needs women” is the message given by UNESCO in the program for the development of women in science” (UNESCO, 2017). In Vietnam, women’s…
Abstract
“The world needs science, science needs women” is the message given by UNESCO in the program for the development of women in science” (UNESCO, 2017). In Vietnam, women’s participation and achievements in scientific research is considered a great and important resource for industrialization and modernization. Even so, are there gender differences in scientific achievement in the social science research institutes in Vietnam? What factors influence the scientific achievement of female social researchers? The answers will be based on data from a 2017 survey with a sample of 756 researchers, of which 77.6% were female. The survey was conducted by the Vietnam Academy of Social Sciences, a leading, ministry-level national center for the social sciences in Vietnam. This chapter analyzed the scientific achievements of researchers through their position as principal investigators of research projects and their publications, and factors that may impact this. Bivariate and multivariate analyses of factors that may affect the scientific achievement of researchers found that gender differences in academic achievement in the social sciences in Vietnam was still prevalent. Female researchers’ scientific achievements were lower than those of their male counterparts. The contribution to science of Vietnamese female researchers was limited by many different factors; the most important were the academic rank of the researchers and gender stereotype that considered housework the responsibility of women.
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Cuong Le-Van, Ngoc-Anh Nguyen, Ngoc-Minh Nguyen and Phu Nguyen-Van
The authors estimated the hidden overhead (capital diversion or wasteful use of capital) of Vietnam state-owned enterprises (SOEs).
Abstract
Purpose
The authors estimated the hidden overhead (capital diversion or wasteful use of capital) of Vietnam state-owned enterprises (SOEs).
Design/methodology/approach
The authors used a panel data set of 10,200 Vietnam SOEs observed over the period 2010–2018. The authors modeled and estimated the hidden overhead by using a stochastic production frontier. The hidden overhead parameter is modelled as the technical inefficiency in the production function.
Findings
Vietnam SOEs are very capital intensive. The hidden overhead (or the wasteful use of capital) is very high with an average rate of 69%.
Research limitations/implications
Alternative estimation methods should be used to account for endogeneity in production inputs. Lack of comparison with the Vietnam private firms.
Originality/value
The paper proposes an original way to quantify hidden overhead (or capital diversion) in the Vietnam SOEs. The finding (a capital diversion rate of 69% on average) is astonishing. It calls for an urgent and profound reform of the Vietnam SOEs.
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Danh Vinh Le, Huong Thi Thu Le, Thanh Tien Pham and Lai Van Vo
The purpose of this paper is to examine the effect of innovation on the performance of small and medium-sized enterprises (SMEs) in Vietnam.
Abstract
Purpose
The purpose of this paper is to examine the effect of innovation on the performance of small and medium-sized enterprises (SMEs) in Vietnam.
Design/methodology/approach
The paper uses data from the surveys on SMEs in Vietnam conducted by the Development Economics Research Group at the University of Copenhagen, the United Nations University’s World Institute for Development Economics Research, Central Institute for Economic Management and Institute of Labor Science and Social Affairs, and applies least squared regressions and 2SLS regressions to examine the effect of innovation on the performance of SMEs.
Findings
The authors find that SMEs with innovation tend to perform better than SMEs without innovation. The authors further show that the positive effect of innovation on firm performance mainly comes from the effect of improvement of existing products, an important type of innovation in SMEs. This result is persistent when the authors use propensity matching score and 2SLS regression with instrumental variable approaches. Overall, the results show the important role of innovation in enhancing the firm performance of SMEs, which sheds light on the literature on the controversial relation between innovation and SMEs performance in the world.
Research limitations/implications
The major limitation of the paper is the lack of data. Although the database used in the paper is widely used to analyze SMEs in Vietnam, it covers about 2,500 firms in only nine provinces/cities in Vietnam.
Practical implications
Policymakers should enact relevant policies to support SMEs with innovation activities, thereby increasing firm performance and their competitiveness. For instance, encouragement policies or financial incentives (tax reduction or subsidies) for innovative firms should be implemented and/or fostered.
Originality/value
To the best of the authors’ knowledge, this is the first paper to examine the effect of different types of innovation on the performance of SMEs in Vietnam.
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Chon Van Le and Uyen Hoang Pham
This paper aims mainly at introducing applied statisticians and econometricians to the current research methodology with non-Euclidean data sets. Specifically, it provides the…
Abstract
Purpose
This paper aims mainly at introducing applied statisticians and econometricians to the current research methodology with non-Euclidean data sets. Specifically, it provides the basis and rationale for statistics in Wasserstein space, where the metric on probability measures is taken as a Wasserstein metric arising from optimal transport theory.
Design/methodology/approach
The authors spell out the basis and rationale for using Wasserstein metrics on the data space of (random) probability measures.
Findings
In elaborating the new statistical analysis of non-Euclidean data sets, the paper illustrates the generalization of traditional aspects of statistical inference following Frechet's program.
Originality/value
Besides the elaboration of research methodology for a new data analysis, the paper discusses the applications of Wasserstein metrics to the robustness of financial risk measures.
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Noel Scott, Brent Moyle, Ana Cláudia Campos, Liubov Skavronskaya and Biqiang Liu
Manh-Hung Nguyen, Chon Van Le and Scott E. Atkinson
The paper investigates the production inefficiency of the US electricity industry in the wake of restructuring and emission reduction regulations.
Abstract
Purpose
The paper investigates the production inefficiency of the US electricity industry in the wake of restructuring and emission reduction regulations.
Design/methodology/approach
The study estimates a multiple-input, multiple-output directional distance function, using six inputs: fuel, labor, capital and annualized capital costs of sulfur dioxide (SO2), nitrogen oxides (NOX) and particulate removal devices, two good outputs – residential and industrial-commercial electricity and three bad outputs – SO2, carbon dioxide (CO2) and NOX emissions.
Findings
The authors find that restructuring in electricity markets improves deregulated utilities' technical efficiency (TE). Deregulated utilities with below-average NOX control equipment tend to invest less in these devices, but above-average utilities do the opposite. The reverse applies to particulate removal devices. The whole sample spends more on NOX, particulate and SO2 control systems and reduces its electricity sales slightly. Increased investments in SO2 and NOX control equipment do not reduce SO2 and NOX emissions, but expansions of particulate control systems cut down SO2 emissions greatly. Stricter environmental regulations have probably shifted the production frontier inwards and the utilities farther from the frontier over time.
Practical implications
Restructuring and environmental regulations do not make all utilities invest more in emission control systems. The US government should devise other schemes to achieve this goal.
Originality/value
The paper unveils heterogeneous reactions of US electric utilities in the wake of restructuring and emission regulations.