Phuong Thi Nguyen, Minh Khac Nguyen and Huong Thu Dang
The purpose of this paper is to identify variables and their effects on the value of technology transaction according to technology demand approach in Vietnam technology market…
Abstract
Purpose
The purpose of this paper is to identify variables and their effects on the value of technology transaction according to technology demand approach in Vietnam technology market, by testing the hypotheses including the effects of technology absorption capacity, internal research and development (R&D) productivity of firms and difficulties in external infrastructure on technology demand.
Design/methodology/approach
The technology transaction value and its impact factors are assessed using Vietnam annual enterprise survey and using technology in production survey from 2012 to 2016. The effects of factors on value of technology transaction are determined by using feasible generalized least squares model.
Findings
The results indicate three main points. First, companies having higher technology absorption capacity and higher dominance in the domestic or foreign markets tend to acquire higher technology demand in the technology market. Second, companies having lower internal R&D productivity tend to require higher external technology demand. Finally, higher level of difficulty from external infrastructure prevents enterprises in accessing technology demand.
Research limitations/implications
The main limitation of the study is that data of firm’s R&D productivity are not available. The study also does not mention information flows from competitors that perhaps have potentially significant impacts on external technology demand of firms.
Practical implications
The paper includes policy implications for the government and industry managers to increase technology transaction value.
Originality/value
The focus of many previous research papers on technology transactions was generally to look at the decisive factors behind firm’s technology supply in both developed and developing countries. However, knowledge about firm’s technology demand is very limited, particularly in the context of developing countries. This paper clarifies the effect of factors on the decision buying external technology for innovation purpose and productivity improvement in Vietnamese manufacturing sector.
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Phuong Thi Nguyen and Minh Khac Nguyen
This research identifies the level of misallocation in Vietnamese manufacturing sector for the period 2000–2015. Meltiz and Polanec dynamic productivity decomposition is used to…
Abstract
Purpose
This research identifies the level of misallocation in Vietnamese manufacturing sector for the period 2000–2015. Meltiz and Polanec dynamic productivity decomposition is used to compare the relative productivity contributions from surviving, entering and exiting firms to aggregate productivity change by the type of ownership. Heckman's two-step model is used to examine the effect of misallocation and industry- and firm-level factors on entry or exit decision and market share of firms in Vietnamese manufacturing sector.
Design/methodology/approach
The level of misallocation and efficiency gains in total factor productivity (TFP) are assessed using Hsieh and Klenow (2009) productivity decomposition framework for the period 2000–2015. The dynamic productivity decomposition of Meltiz and Polanec (2015) is used to compare the relative contributions from surviving, entering and exiting firms to aggregate productivity change. The effects of misallocation and other factors on entry or exit decisions and market share of firms are determined by using Heckman choice model.
Findings
The results indicate three main points. Firstly, resource misallocation is found to be highest among state-owned enterprise (SOEs) and low technology industries. TFP is found to 81.2% greater if there is no resource misallocation among firms. Secondly, the aggregate productivity change for the entering, exiting and surviving firms is 35% due to productivity reallocation among three groups. Finally, the decision of entry or exit as well as the market share of firms are influenced by misallocation and industry- and firm-level factors such as Vietnam's WTO entry, tax policy, financial frictions, industrial concentration, technology gap, capital intensity, human capital, scale of firm, time entry and FDI spillovers. The result finds the higher misallocation level is, the lower the probability and market share for a new firm to enter in the industry is.
Research limitations/implications
The main limitation of the study is that the market is assumed perfectly competitive and the method has only decomposed misallocation of resources to those arising from output and capital distortions. The results of Heckman choice model only clarify on the sub-sample of state-owned enterprises and low technology firms.
Originality/value
The focus of many previous research papers on resource misallocation was generally to look at the level of misallocation in developed countries. However, knowledge about the effect of misallocation and other factors on entry or exit decisions and market share of firms is limited, particularly in the context of developing countries. This paper clarifies the level of misallocation in Vietnamese manufacturing sector and the effect of misallocation and other factors on entry or exit decisions and market share of firms.
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Ngoc Minh Nguyen, Huong Thu Dang, Minh Khac Nguyen and Mai Lan Mai PHung
This paper aims to examine whether foreign technology acquisition is complementary to internal technology development in the context of a developing country.
Abstract
Purpose
This paper aims to examine whether foreign technology acquisition is complementary to internal technology development in the context of a developing country.
Design/methodology/approach
The selection model developed by Heckman (1979) was applied with the balanced panel data of manufacturing enterprises from the Annual Enterprise and Technology Surveys from 2012 to 2016 conducted by the Vietnamese General Statistics Organization.
Findings
The results indicate that foreign technology acquisition and internal technology development are complementary innovation options. Particularly, the number of patents granted for manufacturing enterprises positively affects the probability that enterprises acquire foreign technologies. This effect is stronger in cases of high-tech industries than in cases of low-tech industries.
Research limitations/implications
Regarding the relationship between internal technology development and foreign technology acquisition, the findings suggest that adoption of foreign technology acquisition and priority in budget allocation for foreign technology acquisition are different in nature and that budget allocation is a more complex issue and may depend on other factors.
Practical implications
For developing countries, governments should adopt policies supporting domestic enterprises in acquiring technologies from advanced countries that could complement the locally developed technologies. These supports should focus on the high-tech or high-innovation rate industries.
Originality/value
In the context of a developing economy, the complementary effect of internal technology development and foreign technology acquisition is stronger in cases of the high-tech industries than in cases of the low-tech industries.
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Phuong Thi Nguyen and Minh Khac Nguyen
The purpose of this paper is to examine resource misallocation among Vietnam’s small- and medium-sized enterprises (SMEs) in the manufacturing sector. The paper also aims to…
Abstract
Purpose
The purpose of this paper is to examine resource misallocation among Vietnam’s small- and medium-sized enterprises (SMEs) in the manufacturing sector. The paper also aims to consider selective factors on reducing the level of resource misallocation in SMEs.
Design/methodology/approach
Resource misallocation and efficiency gains in total factor productivity (TFP) are assessed using Vietnam’s annual enterprise survey data for the period 2000–2015 and an appropriate productivity decomposition framework.
Findings
Resource misallocation is found to be higher among SMEs than large scale enterprises. TFP is found to 116.3 per cent greater if there is no resource misallocation among SMEs. Smaller scale, lower market concentration, trade liberalisation and corruption control are found to be associated with lower level of resource misallocation in SMEs.
Research limitations/implications
The major limitation of this study is that it has only decomposed misallocation of resources arising from output and capital distortions and that it focusses on selective factors contribution to reducing misallocation level in SMEs.
Originality/value
Resource misallocation is attracting attention in both developed and developing countries. However, knowledge about resource misallocation among SMEs is limited, particularly in the context of developing countries. This paper assesses the level of resource misallocation among SMEs in Vietnamese manufacturing sector.
Nguyen Khac Minh, Phung Mai Lan and Pham Van Khanh
The purpose of this paper is to measure TFP growth and job reallocation in the Vietnamese manufacturing industry after the Doimoi period.
Abstract
Purpose
The purpose of this paper is to measure TFP growth and job reallocation in the Vietnamese manufacturing industry after the Doimoi period.
Design/methodology/approach
The study uses firm-level panel data from Vietnam’s annual enterprise survey data for 2000–2016 period in the Vietnamese manufacturing industry using Olley–Pakes static and dynamic productivity decomposition methods.
Findings
The aggregate productivity estimated from the WRDG method increased 2.323 percent, of which over 40 percent is due to the reallocation toward more productive firms. Olley–Pakes dynamic decomposition according to ownership, scale and industry shows that the contribution of private and state-owned firms and the contribution of small and medium firms and large firms to the TFP growth are 133, −33 percent, 58.56 and 41.44 percent, respectively. The within-firm productivity and net entry components are the main reasons for TFP growth rather than reallocation. The results show that the composition of the aggregate TFPs, estimated from WRDG, OP, LP and ACF, is correlated very high (over 80 percent) except for net entry components.
Research limitations/implications
The major limitation of this study is that the authors compute an aggregate productivity index using actual employment-based shares (still misallocation in labor), rather than optimal employment-based shares (no misallocation in labor).
Originality/value
Job reallocation between industries is attracting attention in developing countries, especially transition economies. However, knowledge about job reallocation among industries is limited. This paper assesses the level of job reallocation among private and state-owned firms, small and medium firms and large firms in Vietnam.
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Lam Hoang Viet Le, Toan Luu Duc Huynh, Bryan S. Weber and Bao Khac Quoc Nguyen
This paper aims to identify the disproportionate impacts of the COVID-19 pandemic on labor markets.
Abstract
Purpose
This paper aims to identify the disproportionate impacts of the COVID-19 pandemic on labor markets.
Design/methodology/approach
The authors conduct a large-scale survey on 16,000 firms from 82 industries in Ho Chi Minh City, Vietnam, and analyze the data set by using different machine-learning methods.
Findings
First, job loss and reduction in state-owned enterprises have been significantly larger than in other types of organizations. Second, employees of foreign direct investment enterprises suffer a significantly lower labor income than those of other groups. Third, the adverse effects of the COVID-19 pandemic on the labor market are heterogeneous across industries and geographies. Finally, firms with high revenue in 2019 are more likely to adopt preventive measures, including the reduction of labor forces. The authors also find a significant correlation between firms' revenue and labor reduction as traditional econometrics and machine-learning techniques suggest.
Originality/value
This study has two main policy implications. First, although government support through taxes has been provided, the authors highlight evidence that there may be some additional benefit from targeting firms that have characteristics associated with layoffs or other negative labor responses. Second, the authors provide information that shows which firm characteristics are associated with particular labor market responses such as layoffs, which may help target stimulus packages. Although the COVID-19 pandemic affects most industries and occupations, heterogeneous firm responses suggest that there could be several varieties of targeted policies-targeting firms that are likely to reduce labor forces or firms likely to face reduced revenue. In this paper, the authors outline several industries and firm characteristics which appear to more directly be reducing employee counts or having negative labor responses which may lead to more cost–effect stimulus.
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Van Dan Dang and Khac Quoc Bao Nguyen
The study explores how banks design their financial structure and asset portfolio in response to monetary policy changes.
Abstract
Purpose
The study explores how banks design their financial structure and asset portfolio in response to monetary policy changes.
Design/methodology/approach
The authors conduct the research design for the Vietnamese banking market during 2007–2018. To ensure robust findings, the authors employ two econometric models of static and dynamic panels, multiple monetary policy indicators and alternative measures of bank leverage and liquidity.
Findings
Banks respond to monetary expansion by raising their financial leverage on the liability side and cutting their liquidity positions on the asset side. Further analysis suggests that larger banks' financial leverage is more responsive to monetary policy changes, while smaller banks strengthen the potency of monetary policy transmission toward bank liquidity. Additionally, the authors document that lower interest rates induce a beneficial effect on the net stable funding ratio (NSFR) under Basel III guidelines, implying that banks appear to modify the composition of liabilities to improve the stability of funding sources.
Originality/value
The study is the first attempt to simultaneously examine the impacts of monetary policy on both sides of bank balance sheets, across various banks of different sizes under a multiple-tool monetary regime. Besides, understanding how banks organize their stable funding sources and illiquid assets amid monetary shocks is an innovation of this study.
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Bao Khac Quoc Nguyen, Nguyet Thi Bich Phan and Van Le
This study investigates the interactions between the US daily public debt and currency power under impacts of the Covid-19 crisis.
Abstract
Purpose
This study investigates the interactions between the US daily public debt and currency power under impacts of the Covid-19 crisis.
Design/methodology/approach
The authors employ the multivariate generalized autoregressive conditional heteroskedasticity (MGARCH) modeling to explore the interactions between daily changes in the US Debt to the Penny and the US Dollar Index. The data sets are from April 01, 1993, to May 27, 2022, in which noticeable points include the Covid-19 outbreak (January 01, 2020) and the US vaccination campaign commencement (December 14, 2020).
Findings
The authors find that the daily change in public debt positively affects the USD index return, and the past performance of currency power significantly mitigates the Debt to the Penny. Due to the Covid-19 outbreak, the impact of public debt on currency power becomes negative. This effect remains unchanged after the pandemic. These findings indicate that policy-makers could feasibly obtain both the budget stability and currency power objectives in pursuit of either public debt sustainability or power of currency. However, such policies should be considered that public debt could be a negative influencer during crisis periods.
Originality/value
The authors propose a pioneering approach to explore the relationship between leading and lagging indicators of an economy as characterized by their daily data sets. In accordance, empirical findings of this study inspire future research in relation to public debt and its connections with several economic indicators.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-08-2022-0581
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Diem Nhat Phuong Ngo and Cong Van Nguyen
This study aims to analyse the role of the financial and accounting expertise of the chief executive officer (CEO) on financial reporting quality (FRQ) in an emerging economy.
Abstract
Purpose
This study aims to analyse the role of the financial and accounting expertise of the chief executive officer (CEO) on financial reporting quality (FRQ) in an emerging economy.
Design/methodology/approach
This study is based on data collected from a large sample of all non-financial companies listed on Vietnamese stock exchanges during the period 2016–2020 with 2,435 observations. FEM-ROBUST standard errors regression model is used to examine the relationship between the financial, accounting expertise of CEOs and FRQ through earnings management by discretionary accruals.
Findings
The results show that CEOs with financial and accounting expertise have more influence and intervention on earnings management and thus adversely affect FRQ. This behaviour is explained by the fact that CEOs not only have a firm grasp of financial and accounting policies but also know the tricks to interfere with earnings management. Moreover, in the context of emerging economies, CEOs’ awareness and management level are still limited and legal sanctions are not yet strict, so when they have power in their hands, CEOs immediately find ways to build a reputation to enhance the power and earnings for the CEOs themselves.
Research limitations/implications
The limitation of this study is first of all that the research data are not complete and rich because the companies are prohibited from disclosing information and the cooperation relationship is not close. Next is the new research in only one emerging market – Vietnam – so the generalizability is not high.
Originality/value
To the best of the authors’ knowledge, this is the first study to examine the impact of CEOs’ accounting and finance expertise on FRQ in an emerging economy, contributing to the existing literature regarding the scientific debates about CEOs, CEO characteristics, earnings management and FRQ.