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Participation, Government Legitimacy, and Regulatory Compliance in Emerging Economies: A Firm-Level Field Experiment in Vietnam

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  • MALESKY, EDMUND
  • TAUSSIG, MARKUS

Abstract

This paper employs a field experiment in single-party–ruled Vietnam to test whether providing a broad-based representative sample of firms the opportunity to comment on draft regulations increases their subsequent compliance. We find three main outcomes of this treatment. First, treated firms exhibited greater improvement in their views of government’s regulatory authority. Second, these firms were more likely to allow government-affiliated auditors to examine their factories. Third, treated firms demonstrated greater compliance on the factory floor. Access and compliance were not explained by the receipt of advance information about the regulation’s requirements, and none of the three outcomes required that firms offer substantive comments.

Suggested Citation

  • Malesky, Edmund & Taussig, Markus, 2019. "Participation, Government Legitimacy, and Regulatory Compliance in Emerging Economies: A Firm-Level Field Experiment in Vietnam," American Political Science Review, Cambridge University Press, vol. 113(2), pages 530-551, May.
    • Handle: RePEc:cup:apsrev:v:113:y:2019:i:02:p:530-551_00
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    Cited by:

    1. Zhou, Fujin & Oostendorp, Remco, 2024. "Big distortions, small efficiency loss: Measuring resource misallocation with complementary distortions in Vietnam," Journal of Economic Behavior & Organization, Elsevier, vol. 219(C), pages 244-261.
    2. Mallika Tamvada, 2020. "Corporate social responsibility and accountability: a new theoretical foundation for regulating CSR," International Journal of Corporate Social Responsibility, Springer, vol. 5(1), pages 1-14, December.
    3. Byrka-Kita Katarzyna & Czerwiński Mateusz & Bajerska Aurelia, 2023. "Does deterioration in rule of law per se create or destroy value?," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 59(4), pages 277-296, December.
    4. Berkel, Hanna & Estmann, Christian & Rand, John, 2022. "Local governance quality and law compliance: The case of Mozambican firms," World Development, Elsevier, vol. 157(C).

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