Local Business Environment and Enterprise Development in Vietnam: The Role of Macroeconomics
Year: 2025
Type: article
Abstract: ABSTRACT This study examines the impact of the local business environment and macroeconomic factors on enterprise development in Vietnam during the period 2006–2022. Based on provincial panel data and the Cross‐Sectionally Augmented Autoregressive Distributed Lag model, the research evaluates the effects across three dimensions: the number of enterprises, capital scale, and revenue. The local business environment factors include the provincial competitiveness index, labor availability, and trade development, while the gross domestic product scale is used to represent macroeconomic growth. The results reveal that local business environment factors exert a positive influence on all three dimensions of enterprise development; macroeconomic growth also contributes to the expansion of the enterprise sector, with evidence of spatial spillover effects among provinces. Accordingly, the study proposes several policy implications to promote enterprise development.
Source: Review of Development Economics
DOI: 10.1111/rode.70113
Author: Nguyen Hai Quang
Institution: Ho Chi Minh City University of Industry and Trade
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W7117753285