IDEAS home Printed from https://ideas.repec.org/a/taf/rjapxx/v24y2019i3p430-451.html
   My bibliography  Save this article

State owned enterprises and capital misallocation in Vietnam

Author

Listed:
  • Thang Ngoc Bach

Abstract

This study uses the first comprehensive data on Vietnamese manufacturing firms and quantifies the allocative efficiency improvement due to massive entry of private firms amid a simultaneous contraction of state-owned enterprises (SOEs) in the period 2000–2008. It finds that allocative efficiency improvement contributes considerably to the sector’s annual Total Factor Productivity growth, and firm’s entry and exit exerts an increasingly important role in the second half of this period. The productivity dispersion within narrowly-defined industries remains, however, large and persistent. Such effect is attributed to the fact that SOEs disproportionately absorb credit in a period marked with unprecedented growth in domestic credit supply. This paper finds that commercial and subsidized credit per se exhibits a capital distortion reducing effect, but awarding more commercial and subsidized credit to the SOEs, in reference to the private counterparts, yields the anti-capital distortion reducing effect that intensifies with the distribution of higher quantiles.

Suggested Citation

  • Thang Ngoc Bach, 2019. "State owned enterprises and capital misallocation in Vietnam," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 24(3), pages 430-451, July.
    • Handle: RePEc:taf:rjapxx:v:24:y:2019:i:3:p:430-451
    DOI: 10.1080/13547860.2019.1616443
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13547860.2019.1616443
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13547860.2019.1616443?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bach, Thang Ngoc & Le, Thanh & Nguyen, Thang Xuan & Hoang, Khanh, 2023. "Gender discrimination, social networks and access to informal finance of Vietnamese small and medium enterprises," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 358-372.
    2. Phu Nguyen-Van & Ngoc Minh Nguyen & Ngoc Anh Nguyen, 2023. "Capital diversion in Vietnamese state-owned enterprises," EconomiX Working Papers 2023-29, University of Paris Nanterre, EconomiX.
    3. Thang Bach & Charles Harvie & Thanh Le, 2021. "How credit constraints affect small and medium enterprises' strategic employment decisions and employees' labour outcomes: Evidence from Vietnam1," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 29(2), pages 319-341, April.
    4. Phan Le, 2022. "Capital Misallocation and State Ownership Policy in Vietnam," The Economic Record, The Economic Society of Australia, vol. 98(S1), pages 52-64, September.
    5. Qingjun Zhang & Lan Yang & Chuan Liu, 2021. "Vertical structure, capital misallocation and capital allocation efficiency of the real economy," Economic Change and Restructuring, Springer, vol. 54(2), pages 557-584, May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:rjapxx:v:24:y:2019:i:3:p:430-451. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rjap .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.