Chu, C.M. orcid.org/0009-0004-2346-8447 and Nguyen, B. orcid.org/0000-0003-1527-7443 (2025) Foreign small- and medium-sized enterprises and regional institutions. Journal of World Business, 60 (5). 101649. ISSN 1090-9516
Abstract
This study centers upon Vietnam's Law on Investment 2014—a place-based policy that offers investment incentives for foreign firms located in disadvantaged areas. Using the difference-in-differences method for 46,211 firm-year observations 2006–2021, we find that the policy increased the revenue growth of foreign SMEs located in such areas by 17 % more than that of comparable firms located outside. The positive impact is strengthened in regions with stronger governance institutions, namely more efficient business-support services and lower policy bias. Moreover, the impact of the place-based policy combined with business support (policy bias) is stronger in southern (northern) regions embedded in pro-capitalist (pro-socialist) values.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2025 The Authors. This is an open access article under the terms of the Creative Commons Attribution License (CC-BY 4.0), which permits unrestricted use, distribution and reproduction in any medium, provided the original work is properly cited. |
Keywords: | Place-based policy; Institutional theory; Local governance; Foreign SMEs; Vietnam |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Economics Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 03 Jun 2025 10:00 |
Last Modified: | 03 Jun 2025 10:00 |
Status: | Published |
Publisher: | Elsevier |
Identification Number: | 10.1016/j.jwb.2025.101649 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:227312 |
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