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Do enterprise zones promote local business development? Evidence from Vietnam

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  • Tien Manh Vu
  • Hiroyuki Yamada

Abstract

We examined the effects of Vietnamese enterprise zones, under the initiative of the central government, on local businesses across different types of ownership of zone infrastructure developers (ZIDs). We constructed a panel of communes during 2000–2007 using data on zone‐based firms, local firms, and zones. We found that zones led to an increased number of firms and increased employment in the communes hosting the zones, even after excluding zone‐based firms. Our findings also suggest that private partnerships in ZIDs worked best in attracting firms to the zones. The spatial spillover effects of the zones occurred up to a distance of 14 km.

Suggested Citation

  • Tien Manh Vu & Hiroyuki Yamada, 2022. "Do enterprise zones promote local business development? Evidence from Vietnam," Journal of Regional Science, Wiley Blackwell, vol. 62(4), pages 1206-1224, September.
    • Handle: RePEc:bla:jregsc:v:62:y:2022:i:4:p:1206-1224
    DOI: 10.1111/jors.12593
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    Cited by:

    1. Tien Manh Vu & Hiroyuki Yamada, 2021. "Firms and regional favouritism," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 29(4), pages 711-734, October.
    2. Tien Manh Vu & Hiroyuki Yamada, 2023. "Impacts of enterprise zones on local households in Vietnam," Pacific Economic Review, Wiley Blackwell, vol. 28(5), pages 593-612, December.

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    More about this item

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • L53 - Industrial Organization - - Regulation and Industrial Policy - - - Enterprise Policy

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