An Investigation on The Impact of Institutional Environment on Firm Growth in Vietnam

Abstract:This paper investigates the impact of the institutional environment on firm growth in Vietnam. Using a firm-level dataset, the study obtains balanced panel data for 37,788 registered enterprises from a unique data set. It analyzes the effects of institutional factors on firm growth using system GMM analysis. The study finds that in line with recent theoretical literature, institutional factors such as business support service, land access, time costs, and informal charges promote firm growth in terms of both employment and capital. This research also finds that the impact of institutional factors on firms’ capital growth is more significant.