Firm Efficiency in a Transition Economy: Evidence from Vietnam

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    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.
    Original languageEnglish
    Pages (from-to)47-66
    JournalAsian Economic Journal
    Issue number1
    Publication statusPublished - 2008


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