TAILIEUCHUNG - Ownership, technology gap and technical efficiency of small and medium manufacturing firms in Vietnam: A stochastic meta frontier approach

Applying the method for two periods: one during the global economic crisis and the other after the end of the crisis, the study determines that in both periods, there was a strong evidence that non-state-owned firms performed much better than state owned counterpart. | Ownership technology gap and technical efficiency of small and medium manufacturing firms in Vietnam A stochastic meta frontier approach Decision Science Letters 8 2019 225 232 Contents lists available at GrowingScience Decision Science Letters homepage dsl Ownership technology gap and technical efficiency of small and medium manufacturing firms in Vietnam A stochastic meta frontier approach Thi Minh Nguyena Quoc Hoi Lea Thi Van Hoa Trana and Minh Ngoc Nguyena aNational Economics University Vietnam CHRONICLE ABSTRACT Article history The ownership - efficiency relationship in a firm has always been an important topic. In this Received February 7 2019 paper we focus on the state owned versus non-state-owned status of Vietnamese manufacturing Received in revised format firms to shed light into the relationship between these two variables when using a more state- March 10 2019 of-the-art method as a stochastic meta-frontier method. Applying the method for two periods Accepted March 16 2019 Available online one during the global economic crisis and the other after the end of the crisis the study March 16 2019 determines that in both periods there was a strong evidence that non-state-owned firms Keywords performed much better than state owned counterpart. We also found that the difference became Ownership even larger during the harsh time and sub-industries with non-state-owned firms could Technology gap outperform the state-owned firms significantly. Technical efficiency Small and medium manufacturing firms Vietnam 2018 by the authors licensee Growing Science Canada. 1. Introduction Vietnam is on the way towards to a more market-oriented economy. From the legal perspective the Enterprise Law 2005 and more recently the Enterprise Law 2014 help to reduce the difference in the ways state owned enterprises SOE and non-SOE are treated by law. From the practical perspective more enterprises have been privatized and that makes the private sector become

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