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Workshop on Corruption , institutional quality and efficiency of business operations

Morning of the 21th-April in 2016, Faculty of Political Economy, University of Economics Business- VNU has held scientific conferences on the theme "Corruption, institutional quality and operational efficiency of the business: Proof of economic output from Vietnam "


This is the research content of the group A-level subjects Vietnam National University, led by Dr. code QG 15.40. Tran Quang Tuyen as chairman. Findings of the study will be published in Estudios de Economia Magazine, National University of Chile (April 12/2016). This is a prestigious international journals in the ISI database (SSCI) and the list of 342 journals in the category of Thomson Reuters Economics. The seminar was attended by members inside and outside the faculty, fellows and graduate students. TS. Tran Quang Tuyen has reported the main contents of the seminar. Corruption is a common phenomenon in developing countries as well as in Vietnam. There are many theories explaining the impact of corruption to business efficiency. Resource theory that corruption distort the efficient allocation of resources, erosion of company reputation, impede innovation activities, technological improvements of the company and therefore have a negative impact to society in general and improving the company's productivity in particular. The theory of "seeking rents" says that companies  bribe government agencies have better efficiency. Because of  amid rigid administrative procedures, bribery will help businesses save  time, take advantage of better business opportunities and so corruption is beneficial for business. Empirical evidence shows that corruption has a negative impact on the efficiency companies in Europe, the positive impact in East Asia, and has no impact on other countries. However, when researching corruption, it is necessary to control the quality of institutional environment. The previous studies on corruption often ignored endogenous corruption. Furthermore, most of these previous studies often used variable  corruption. . Corruption is often measured by dummy variables (with and without bribes) and therefore do not measure the impact of the level of corruption to business efficiency. Research by Dr. Tran Quang Tuyen and his colleagues used survey data of small and medium-sized enterprises from 2005-2011, combined with data from 2005-2011 surveys on PCI. The authors have used different estimation methods, especially the method of instrumental variables to the data table to overcome the endogenous corruption, ensuring accurate results and high reliability. The study results showed that the level of corruption (% corruption than revenue) impact negatively and small  on efficiency of enterprises. Besides, the support variant death as the private sector has a positive impact, while solving procedures have negative impacts, and labor training has no effect. The research findings have important policy implications by reducing corruption and improving the quality of institutions to support the private sector in Vietnam. At the conference, many questions have been raised and discussed, such as how the type of corruption impacts, the net impact of corruption (and cost benefits to the enterprise). With the exchange of positive and effective, scientific seminar was a great success.


Hang Truong

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