The Impact of Quality of Resources on Total Factor Productivity of Enterprises in Vietnam

Abstract

This study investigates the effect of quality of resources on Total Factor Productivity of enterprises in Vietnam. Using neo-classical growth theory of Solow (1956), we hypothesize that the quality of capital and labor is positively related to Total Factor Productivity of the enterprises. The study uses the survey data extracted from the Enterprise Survey data set of the World Bank in 2015 and 2009 to test the proposed hypotheses. OLS regression shows that our hypothesis is strongly supported under controlling the characteristics of enterprises.

Keywords

Total factor productivity, quality of resources, enterprises, Vietnam.ises

  References

1. Solow, R.M. 1956. “A contribution to the Theory of Economic Growth”, The Quarterly Journal of Economics, 70, 65-94.
2. Solow, R.M. 1957. “ Technical change and the aggregate production function”, Review of Economics and Statistics, 39, 312-320.
3. Solow, R.M. 1960. “Investment and technological progress”, In Mathematical methods in the social sciences, 1959. Eds, Arrow, K., Karlin, S. & Suppes, P., Stanford University Press, Stanford, CA, 89-104.
4. Mankiw, N.G, Romer, D & Weil, D.N. 1992. “A Contribution to the Empirics of Economic Growth”, The Quarterly Journal of Economics, 107, 407-437.
5. Rebelo, S. 1992. “Long run policy analysis and long run growth”, Journal of Political Economy, 99, 500–521.
6. Romer, P.M. 1990. “Endogenous Technological Change”, Journal of Political Economy, 98, 71-102.
7. Phan Nguyễn Khánh Long. 2012. “Đánh giá chất lượng tăng trưởng của tỉnh Thừa Thiên Huế dưới góc độ năng suất các nhân tố sản xuất”, Tạp chí khoa học Đại học Huế, 72B (số 3).
8. Myers, S.C. & Majluf, N.S. 1984. “Corporate Financing and Investment Decisions When Firms Have Information That Investors Do Not Have”, Journal of Financial Economics, 13, 187-221.
9. Barro, R.J. 2001. “Human Capital and Growth”, American Economic Review, 91, 2, 12-17.
10. Waldkirch, A. 2014. “Foreign Ownership and Firm Productivity: Evidence from a Large Sample of Countries”,
11. Robert, E.L. & Sjoholm, F. 2004. “Foreign Direct Investment and Wages in Indonesian Manufacturing”, Journal of Development Economics, 73(1), 415-422.
12. Waldkirch A. 2014. “Foreign Ownership and Firm Productivity: Evidence from a Large Sample of Countries”.
13. Đặng Hoàng Thống & Võ Thành Danh. 2011. “Phân tích các yếu tố tác động đến tăng trưởng của thành phố cần thơ: cách tiếp cận tổng năng suất các yếu tố”, Tạp chí Khoa học Trường Đại học Cần Thơ, 17b, 120-129.
14. Ozyurt, S. 2009. “Total Factor Productivity Growth in Chinese Industry: 1952-2005”, Oxford Development Studies, 37(1), 1-17.
15. Fillat, C. & Woerz, J. (2011). “Good or Bad? The Influence of FDI on Output Growth. An Industry Level Analysis”, The Journal of International Trade & Economic Development: An International and Comparative Review, 20(3), 293-328.
16. Oteng-Abayie, E.F. & Frimpong, J.M. (2006). “Bounds testing approach: an examination of foreign direct investment, trade, and growth relationships”, American Journal of Applied Sciences. 3. 2079-2085.
17. Thi Thu Tra Pham. 2015. “Does Exporting Spur Firm Productivity?”. Journal of Southeast Asian Economics, 32, 84-105.
18. Zeitun, R. & Tian, G.G. 2007. “Capital Structure and Corporate Performance: Evidence from Jordan”, Australian Accounting, Business and Finance Journal, 1, 40-59.
19. Myers, C.S. 1977. “Determinants of Corporate Borrowing”, Journal of Financial Economics, 5, 147-175.
20. Jajri, J. 2007. “Determinants of Total Factor Productivity Growth in Malaysia”, Journal of Economic Cooperation, 28, 41-58.
21. Pietrzak, B.M. & Balcerzak, P.A. (2016). “Quality of Human Capital and Total Factor Productivity in New European Union Members States”, Statistics in Transition new series,17, 497-514.