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Rise and Fall of Multinational Enterprises in Vietnam: Survival Analysis Using Census Data during 2000–2011 *
Author(s) -
Vu Tien Manh,
Yamada Hiroyuki,
Otsuki Tsunehiro
Publication year - 2017
Publication title -
asian economic journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.345
H-Index - 28
eISSN - 1467-8381
pISSN - 1351-3958
DOI - 10.1111/asej.12114
Subject(s) - multinational corporation , business , predictability , government (linguistics) , census , hazard model , bureaucracy , transparency (behavior) , economics , demographic economics , finance , politics , political science , demography , population , sociology , linguistics , philosophy , physics , quantum mechanics , law
This study examined the survival of multinational enterprises (MNE) in Vietnam during 2000–2011 using Cox hazard models. The characteristics and ownership structure of firms and the nationality of foreign partners are found to be associated with the probability of firm exit, with a firm having greater capital share of foreign partners surviving longer. An efficient local government requiring less time for bureaucratic procedures and inspections is found to be associated with a lower probability of MNE exiting. Meanwhile, transparency in business regulations and predictability in implementing central government policies accelerate the survival of highly competitive MNE.