Local corruption and corporate investment in an emerging market
This paper examines how local corruption determines corporate investment in Vietnam where local corruption is more relevant to firms’ business activities than central corruption. We use the informal payment score extracted from the Vietnam Provincial Competitiveness Index (PCI) database as a proxy o...
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| Format: | Article |
| Language: | English |
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Elsevier
2024-07-01
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| Series: | Asia and the Global Economy |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2667111524000112 |
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| _version_ | 1846122055410384896 |
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| author | Thi Mai Nguyen Quoc Trung Tran Thi Thuy Trang Truong |
| author_facet | Thi Mai Nguyen Quoc Trung Tran Thi Thuy Trang Truong |
| author_sort | Thi Mai Nguyen |
| collection | DOAJ |
| description | This paper examines how local corruption determines corporate investment in Vietnam where local corruption is more relevant to firms’ business activities than central corruption. We use the informal payment score extracted from the Vietnam Provincial Competitiveness Index (PCI) database as a proxy of local corruption. With a sample of 5,852 observations from firms listed in Vietnam, we find that local corruption increases investment expenditure through decreasing underinvestment and increasing overinvestment. |
| format | Article |
| id | doaj-art-f315024af6ec45ff90fb95fe891a8a7b |
| institution | Kabale University |
| issn | 2667-1115 |
| language | English |
| publishDate | 2024-07-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Asia and the Global Economy |
| spelling | doaj-art-f315024af6ec45ff90fb95fe891a8a7b2024-12-15T06:17:43ZengElsevierAsia and the Global Economy2667-11152024-07-0142100087Local corruption and corporate investment in an emerging marketThi Mai Nguyen0Quoc Trung Tran1Thi Thuy Trang Truong2Foreign Trade University, Ho Chi Minh City Campus, Ho Chi Minh City, VietnamCorresponding author at: Foreign Trade University, Ho Chi Minh City Campus, 15 D5 Street, Ward 25, Binh Thanh District, Ho Chi Minh City, Vietnam.; Foreign Trade University, Ho Chi Minh City Campus, Ho Chi Minh City, VietnamForeign Trade University, Ho Chi Minh City Campus, Ho Chi Minh City, VietnamThis paper examines how local corruption determines corporate investment in Vietnam where local corruption is more relevant to firms’ business activities than central corruption. We use the informal payment score extracted from the Vietnam Provincial Competitiveness Index (PCI) database as a proxy of local corruption. With a sample of 5,852 observations from firms listed in Vietnam, we find that local corruption increases investment expenditure through decreasing underinvestment and increasing overinvestment.http://www.sciencedirect.com/science/article/pii/S2667111524000112G32G34 |
| spellingShingle | Thi Mai Nguyen Quoc Trung Tran Thi Thuy Trang Truong Local corruption and corporate investment in an emerging market Asia and the Global Economy G32 G34 |
| title | Local corruption and corporate investment in an emerging market |
| title_full | Local corruption and corporate investment in an emerging market |
| title_fullStr | Local corruption and corporate investment in an emerging market |
| title_full_unstemmed | Local corruption and corporate investment in an emerging market |
| title_short | Local corruption and corporate investment in an emerging market |
| title_sort | local corruption and corporate investment in an emerging market |
| topic | G32 G34 |
| url | http://www.sciencedirect.com/science/article/pii/S2667111524000112 |
| work_keys_str_mv | AT thimainguyen localcorruptionandcorporateinvestmentinanemergingmarket AT quoctrungtran localcorruptionandcorporateinvestmentinanemergingmarket AT thithuytrangtruong localcorruptionandcorporateinvestmentinanemergingmarket |