Eine Plattform für die Wissenschaft: Bauingenieurwesen, Architektur und Urbanistik
Eine Plattform für die Wissenschaft: Bauingenieurwesen, Architektur und Urbanistik
Corruption, market structure, and industry competition in the Vietnamese construction sector
The Vietnamese construction sector is arguably the country’s industry most vulnerable to corruption, leading to poor functioning of the sector. This analysis empirically investigates how corruption affects competition in the construction industry, and how different market structures shape different types of corruption and its potentially different impacts. Our empirical models for industry competition are estimated on a panel of 33,045 year-observations using the Fractional Binomial Logit model. The findings demonstrate that corruption reduces competition, and that the effects of corruption depend on the type of corruption and market structure in which firms operate. We find evidence that corruption is characterized by collusion between local authorities and dominant firms in highly concentrated markets, leading to the persistent concentration of the sector in highly corrupt areas. In areas with lower corruption, corruption is characterized by bureaucratic holdups while lowered corruption increases industry competition. Petty corruption is observed in less corrupt areas while it does not affect industry competition. The finding suggests that promoting transparency in public procurement regulatory processes enhances industry competition and mitigates corruption risks associated with different market structures. Additionally, implementing reforms to ensure equitable access to reliable public reporting and services can facilitate a more concentrated yet efficient industry structure.
Corruption, market structure, and industry competition in the Vietnamese construction sector
The Vietnamese construction sector is arguably the country’s industry most vulnerable to corruption, leading to poor functioning of the sector. This analysis empirically investigates how corruption affects competition in the construction industry, and how different market structures shape different types of corruption and its potentially different impacts. Our empirical models for industry competition are estimated on a panel of 33,045 year-observations using the Fractional Binomial Logit model. The findings demonstrate that corruption reduces competition, and that the effects of corruption depend on the type of corruption and market structure in which firms operate. We find evidence that corruption is characterized by collusion between local authorities and dominant firms in highly concentrated markets, leading to the persistent concentration of the sector in highly corrupt areas. In areas with lower corruption, corruption is characterized by bureaucratic holdups while lowered corruption increases industry competition. Petty corruption is observed in less corrupt areas while it does not affect industry competition. The finding suggests that promoting transparency in public procurement regulatory processes enhances industry competition and mitigates corruption risks associated with different market structures. Additionally, implementing reforms to ensure equitable access to reliable public reporting and services can facilitate a more concentrated yet efficient industry structure.
Corruption, market structure, and industry competition in the Vietnamese construction sector
Nguyen Chau, Trinh (Autor:in) / Pham, Thi Thu Tra (Autor:in) / Ha, Thi Cam Van (Autor:in) / Nguyen, Duy (Autor:in)
Construction Management and Economics ; 42 ; 54-69
02.01.2024
16 pages
Aufsatz (Zeitschrift)
Elektronische Ressource
Englisch
Collusion , corruption , industry competition , market share , market structure , Vietnam , D00 , D04 , L10
Measures to expand market inroads into the Vietnamese construction market
| Online Contents | 2013
Measures to expand market inroads into the Vietnamese construction market
| Springer Verlag | 2013
Investigating Partnering Performance in the Vietnamese Construction Industry
| Springer Verlag | 2020
Corruption costs the construction industry billions
British Library Online Contents | 2006