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Firm Efficiency in a Transitional Economy: Evidence from Vietnam
Author(s) -
Tran Thi Bich,
Grafton R. Quentin,
Kompas Tom
Publication year - 2008
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/j.1467-8381.2008.00268.x
Subject(s) - frontier , metropolitan area , economics , stochastic frontier analysis , government (linguistics) , macroeconomics , production (economics) , medicine , linguistics , philosophy , archaeology , pathology , history
The paper examines efficiency performance of the non‐state small and medium manufacturing industries in a transitional and developing economy. Using firm level data in Vietnam from 1996 and 2001, cross‐sectional models are estimated using the stochastic frontier method. The results show a considerable variation in efficiency levels among firms and that a greater use of family labor and a metropolitan location are associated with improvement in technical efficiency. The results indicate few benefits from direct government financial and non‐financial assistance to businesses.