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Corruption and firm profitability in Vietnam

Author

Listed:
  • Phuoc Vu Ha
  • Le Ngu Anh Ngo
  • Ngoc Phi Anh Doan
  • Bao Bao Vuong

Abstract

Governments in both developing and developed countries fight corruption since it can harm economic development. However, it has raised the question of why it still exists at a high level in emerging markets like Vietnam. The study aims to figure out the impact of corruption on firm profitability in Vietnam. With the data from surveys of World Bank, Vietnam Competitive Initiative and Vietnam Chamber of Commerce and Industry from 2005 to 2017, and by measuring corruption at country level and provincial level, the study provides the impact of corruption on firm profitability. We demonstrate that corruption has a negative effect on the profitability of firms. The results of this study give a better understanding about the characteristics of a featured emerging market like Vietnam. Lower levels of corruption, a better business environment quality may help developing countries in attracting more investors and hence, push up the economic growth.

Suggested Citation

  • Phuoc Vu Ha & Le Ngu Anh Ngo & Ngoc Phi Anh Doan & Bao Bao Vuong, 2024. "Corruption and firm profitability in Vietnam," International Journal of Sustainable Economy, Inderscience Enterprises Ltd, vol. 16(3), pages 253-264.
    • Handle: RePEc:ids:ijsuse:v:16:y:2024:i:3:p:253-264
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