(Luận văn) the imfact of transaction cost on competitiveness level, case study in vietnam at the provincial level

UNIVERSITY OF ECONOMICS INSTITUTE OF SOCIAL STUDIES HO CHI MINH CITY THE HAGUE VIETNAM THE NETHERLANDS ng ep hi w n THE VIETNAM- THE NETHERLANDS PROJECT FOR M.A PROGRAM lo ad IN DEVELOPMENT ECONOMICS u yj th lu la p yi THE IMPACT OF TRANSACTION COST ON COMPETITIVENESS LEVEL, an CASE STUDY IN VIETNAM AT THE PROVINCIAL LEVEL n va "CJ ll fu so GIAO DVC fJAO T,;O By THUVIEN \ ) ·7 6t c:: oi m TRVONG 8~1 HQC KINH TE TP.HCM at nh BUI QUANG HUY z z ht vb A thesis submitted in partial fulfillment of the requirements for the degree of k jm MASTER OF ARTS IN ECONOMICS OF DEVELOPMENT gm an Lu DR NGUYEN TRQNG HOAI om l.c ACAMEDIC SUPERVISOR: n va HO CHI MINH CITY, APRIL 2008 CERTIFICATION "I certify that the substance of this thesis has not already been submitted for h ng any degree and is not being currently submitted for any other degree p ie I certify that to the best of my knowledge and help received in preparing this w thesis and all sources used, have been acknowledged in this thesis" n a lo d yj th Signature ip uy la BUI QUANG HUY n va Date: April 2008 oi m ll fu • an lu • z at nh z • k jm ht vb om l.c gm an Lu va n t re I ACKNOWLEDGMENTS This thesis is a very significant in my life And this thesis would not have been ng finished without the best helps and supports from many people So, I wish to hi ep express my acknowledgments to them Firstly, I would like to express my acknowledgment and thank to my academic w n supervisor, Dr Nguyen Trong Hoai, for his guidance and comments through ad lo # my thesis writing period His scientific instructions make my thesis become th yj more clearly and concise uy la ip I sincerely thank Mr Nguyen Duy Khanh, who has provided me to have the data set of GDP of The General Statistics Office; and Mr Nguyen Anh Tuan a lu i n - the expert of the VCCI & VNCI for giving me help in the statistical and va n calculation issues of the PCI data for my thesis fu ll I am very grateful to my teachers and staff in Vietnam -Netherlands Project, m oi Mr Dao Xuan Due - my leader and friends of mine for their help and at nh friendship z And finally, as for my family, specially my wife, I can not thank them enough z vb jm ht for their unconditional support and love They has encouraged and supported me in during this program k gm Ho Chi Minh City, April2008 l m co an Lu n va t re e II - - - - - - - - - - - - - ABSTRACT The Transaction cost & Competitiveness include multidimensional feature of ng ep hi an economic entity operating in a market economy In this thesis, therefore, different aspects of them can be explored The meaning of Transaction cost & w Competitiveness for different economic entities will be determined and their n relationship will be shown on the provincial level The major determinants of ad lo I Transaction cost are presented And, the main objectives of the thesis are th \ yj firstly, to build a measurement regression model of the Competitiveness level uy la ip basing on data which is collected from some resources (The VNCI & VCCI (2005-2006); General Statistics Office); and then to use that model to evaluate a lu i n the impact of transaction cost on the Competitiveness level From which, va some important policies can be given so that the transaction cost can be n t fu reduced and the provincial competitiveness in Vietnam can be increased ll oi m remarkably at nh z z k jm ht vb gm ·- l m co an Lu n va • t re e III LIST OF ABBREVIATION Co Competitiveness h ng GDP/head or capita Gross Domestic Product per head or capita p ie Transaction cost HK Human Capital w TC n a lo QI Quality of Infrastructure d PM Proximity to Market EC Entry cost IC Informal charges Tc Time cost of regulatory compliance TAl Transparency and access to Information ip uy la an lu n va oi m ll fu • yj th • PSD Pro-activity of Provincial Leadership z at nh X Time of researching z The Vietnam Competitiveness Initiative & om l.c Lu an OLS Ordinary Last Square va n VND Vietnamese dong re Percent t % SWF social welfare function • gm Produit Interieur Brut (meaning GDP/head) k PIB jm MICI Microeconomic Competitiveness Index ht Vietnam Chamber of Commerce and Industry vb The VNCI & VCCI IV (Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level - TABLE OF CONTENTS CHAPTER 1: INTRODUCTION ! h ng 1.1 Problem statement ie p 1.2 Research objectives w 1.3 Research questions: n lo ad 1.4 Research hypotheses: th • 1.5 Research methodology: i uy yj 1.6 Research limitation: n ua al pl CHAPTER 2: LITERATURE REVIEW 2.1 Definitions n va ll fu 2.1.1 Competitiveness oi m 2.1 Transaction costs a nh 2.2 Theoretical backgrounds tz 2.2.1 The competitiveness model 10 z vb jm ht 2.2.2 Transaction cost model 14 k 2.2.3 Human capital, Quality of Infrastructure and Proximity to market: 17 gm l.c 2.3 Empirical studies 19 om 2.3.1 Dale B Thompson (1998) 19 Lu 2.3.2 Ning Wang (2003) 25 an n va • 2.3.3 J Luis Guasch & Alvaro Escribano (2005) 26 t re 2.3.4 World Bank (2006) 28 v (Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level (Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level 2.3.5 Empirical study of the USAID-funded Vietnam Competitiveness Initiative (VNCI) and the Vietnam Chamber of Commerce and Industry h ng (VCCI) (2005-2006) 31 p ie 2.4 Chapter Remarks 31 CHAPTER 3: DATA AND ECONOMETRIC MODEL FINDINGS 34 w n a lo 3.1 The Econometric Design 34 d yj th 3.2 The Definition of variables 35 ip uy 3.2.1 Dependent Variable (Competitiveness) 35 la 3.2.2 Independent variable 35 an lu 3.2.3 Model specification 38 n va f 3.3 Data collection method 39 oi m ll fu 3.3.1 Competitiveness 40 z at nh 3.3.2 The determinants of Transaction costs on the Provincial Competitiveness 40 z ht vb 3.3.3 Variable analysis 40 k jm 3.4 Main hypothesis: 46 gm 3.5 Estimation of result by regression equation 46 om l.c 3.6 Explanation of coefficient 48 3.7 Chapter remarks 54 va n 4.1 Conclusions 56 an Lu CHAPTER 4: CONCLUSIONS AND POLICY IMPLICATIONS 56 REFERENCES 60 VI (Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level t re 4.2 Policy implications 57 (Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level APPEND IX .66 APPEND IX • ••••.•• ••.•• • •• ••.•• • •• •• • ••.• 70 ng ep hi APPEND IX 73 APPENDIX 74 w n ad lo yj th n a lu la ip uy n va ll fu oi m at nh z z ht vb k jm om l.c gm an Lu va f n te re VII (Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level (Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level LIST OF TABLES Table 2.1: Checklist for the Institutional Transaction Costs Framework 22 h ng Table 2.2: Some Important Types of Transaction Costs 28 p ie Table 2.3: Transactions Cost Related to the Legal and Regulatory w Environment 29 n a lo Table 3.1: Variable summary 39 d yj th Table 3.2: Descriptive statistics of ratio difference of the variable ip uy between 2005-2006 41 la Table 3.3: The detail result of Provincial Competitiveness Sub-Indices in an lu 2005 43 n va Table 3.4: The detail result of Provincial Competitiveness Sub-Indices in fu oi m ll 2006 44 Table 3.5: The results of regression 47 z at nh Table 3.6: The results of restricted regression SO z k jm ht vb om l.c gm an Lu va n • t re VIII (Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level (Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level CHAPTER 1: INTRODUCTION 1.1 Problem statement h ng In recent years, globalization has brought new opportunity as well as p ie challenges to both policy makers and enterprises of Vietnam In the context of globalization, regional and international organizations have been established, w n growing and setting new standards to influence business activities and various a lo d sectors It means that the competitiveness improvement becomes one of most yj th important issue in the economy So, what is competitiveness? And, why does uy competitiveness have important role in economy? ip la According to the Reports of the National Council for Competitiveness and an lu Development (2006); Competitiveness, as the ability to maintain and improve n va the standards of living in a country, advance the business environment, fu oi m ll strengthen employment, cohesion, environmental protection, and to constantly upgrade productivity and increase market shares in a globalize context Thus, z at nh when Vietnam becomes a member of WTO, competitiveness is the key to the further economic success Recently, Vietnam's Government focuses on z • ht vb efficiency to enhance the national competitiveness of Vietnam as well as jm provinces That is why more and more Vietnam has become an attractive still complain about complicated procedures o l.c investors gm However, k destination for foreign investors (vietnamnet.vn (2006)) It is because they have to spend a lot of times and m have to lose a lot of transaction cost before they get anything So, what is t (Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level re transaction cost and an increase in competitiveness is a really urgent demand? n transaction cost? How is its role in modern social? And whether a reduction in va • an Lu costs for overlapping law, regulation, and bureaucratic official staff And, they (Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level Collins, Bruce M., and Frank J Fabozzi (1991) "A methodology for measuring transaction costs." Financial Analysts Journal47 (2):pp 27-36 h ng Demsetz, Harold (1968) "The cost of transacting." 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Journal of Financial Economics 12:pp 57-79 jm Stoll, Hans and Robert Whaley (1983) "Transaction costs and the small firm gm http://www.competitiveness.org/article/articleview/774, 15 - om l.c The Competitiveness Institute (2007) "The cluster practitioners network" Nov - n Region" http://www.unece.org/ead/sernlsem2004/papers/Fagerberg.pdf va The Competitiveness of nations (2004) "Economic Growth in the ECE an Lu 2007 t re The Free Dictionary (2007) "Financial dictionary - Transaction cost" http://encyclopedia thefreedictionary com/transaction +cost 62 (Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level (Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level I I global 1!he I I development finance (2006) report http://pgpblog.worldbank.org/node?page=25 I I ng I the International Institute for Management Development (IMD), The World ep hi I I Competitiveness I Yearbook http://www.imd.ch/research/centers/wcc/research_methodology.cfm w I n I lo ifhe National Competitiveness Council (2007), "Annual Competitiveness ad Report 2001 " u yj th http://www forfas ie/ncc/reports/ncc _annual_01 I a pproach.htm#2 Reports p yi :The of the National Council for Competitiveness and la an lu Development.(2006) "The 2005 competitiveness report, executive summary" n va http://www google.com vn/search ?hl=vi&q=% 22ability+to+maintain+an fu ll d+improve+the+standards+of+living+in+a+country%22&meta= oi m :The Role of Intellectual Property System in the use of ICTs by SMEs (2001) nh I I at http://www wipo.int/sme/en/documents/pdf/codi_2 pdf z z The socio-economic & enviromental research institute (2002) "Economic the Penang State Government" ht to vb briefing jm http://www.seri.com.my/oldsite/EconBrief/EconBrief2002-08.PDF k Vietnamnet.vn (2006) "Prices m 2007: up or gm The down?" l m co http://english vietnamnet vn/biz/2007 /01/651517/ an http://www.vietnamnet.vn/psks/2006/11/632027/, 10- Nov- 2006 Economic Governance for Development" http://www.pcivietnam.org/ 63 (Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level Private Sector t re Measuring n - va The VNCI & VCCI (2005, 2006) "The Vietnam Provincial Competitiveness Index Lu The Vietnamnet.vn (2006) "Thu tt,lc phi~n ha, hanh h 10% leading to Maintain Ho It means that there is no heteroscedasticity in unrestricted model (Nguyen Trong Hoai (2007)) ie p w Table Appendix 1.3: The results of multicollinearity Test of unrestricted regression n lo ad th i uy yj Rii 0.166425 0.184588 0.085345 0.441841 0.403008 0.531889 0.118037 0.319345 n ua al pl VIF=1/(l- Rii ) 1.199652 1.226374 1.093308 1.791604 1.675064 2.136245 1.133834 1.469173 n va 1NIF 0.833575 0.815412 0.914655 0.558159 0.596992 0.468111 0.881963 0.680655 ll fu Unrestriced model HK QI PM EC TAl TC IC PSD oi m Source: Author's calculation < R} (0.618495) and, thus Variance - tz a nh Table Appendix 1.3 show that Rij z VIF jm ht vb Inflation Factor (VIP) is used to test the problem of multicollinearity = - -1 -:-(1 - r;i2) k IS gm All calculated VIP smaller than 10, and it means that there no om l.c multicollinearity arising in the unrestricted model (Gujarati, 1995) IS an Lu n va t re 69 (Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level (Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level APPENDIX2 h ng ie p Table Appendix 2.1: The results of restricted regression Dependent Variable: LOG(CO) Method: Least Squares Date: 05/02/08 Time: 13:16 Sample: 84 Included observations: 84 w n Variable Coefficient Std Error lo ad c th LOG(QI) LOG(PM) LOG(TC) LOG(PSD) X 12.36768 0.950085 0.410052 0.610070 0.312177 0.376007 i uy yj n ua al pl 0.604688 0.579347 0.400854 12.53332 -39.28894 2.017177 n va R-squared Adjusted R-squared S.E of regression Sum squared resid Log likelihood Durbin-Watson stat 0.505713 0.113284 0.089294 0.241981 0.123717 0.117817 t-Statistic Prob 24.45593 8.386782 4.592166 2.521153 2.523317 3.191458 0.0000 0.0000 0.0000 0.0137 0.0137 0.0020 ll fu Mean dependent var S.D dependent var Akaike info criterion Schwarz criterion F-statistic Prob(F-statistic) oi m 16.02424 0.618050 1.078308 1.251938 23.86247 0.000000 a nh Source: Author's calculation tz Estimation Command: z vb jm ht LS LOG(CO) C LOG(QI) LOG(PM) LOG(TC) LOG(PSD) X k Estimation Equation: gm LOG(CO) = C(l) + C(2)*LOG(QI) + C(3)*LOG(PM) + C(4)*LOG(TC) + l.c C(5)*LOG(PSD) + C(6)*X om 12.367 + - (0.089) 0.312*LOG(PSD) + 0.376*X (0.123) 70 (Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level (0.117) t re (0.241) + 0.41 *LOG(PM) + n va 0.61 *LOG(TC) 0.95*LOG(QI) (0.113) (0.505) an LOG(CO)= Lu The results of the restricted model: (Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level Table Appendix 2.2: The results of White Heteroskedasticity Test of restricted regression h ng White Heteroskedasticity Test: 0.690672 14.29296 ie F-statistic Obs*R-squared Probability Probability 0.814249 0.766353 p w Test Equation: Dependent Variable: RESID"2 Method: Least Squares Date: 05118/08 Time: 16:21 Sample: 84 Included observations: 84 n lo ad th i uy yj Coefficient Std Error t-Statistic Pro b c 3.018684 -0.178860 -0.046826 0.085594 0.292834 -0.066816 0.064101 -3.575549 0.550268 0.897373 0.327240 0.272560 -1.778299 0.280086 -0.666933 0.625970 1.606543 -0.351935 -0.223380 -1.165060 7.037764 3.404686 0.307376 0.606259 1.548788 0.975301 0.548784 2.269121 0.264839 1.243614 0.595081 0.454118 6.042098 1.856066 1.349287 1.465648 3.010653 0.429159 0.732698 2.262385 0.428927 -0.052533 -0.152341 0.141185 0.189073 -0.068508 0.116806 -1.575742 2.077746 0.721585 0.549908 0.600198 -0.294318 0.150903 -0.494286 0.427094 0.533619 -0.820057 -0.304874 -0.514970 0.6694 0.9583 0.8794 0.8882 0.8506 0.9456 0.9074 0.1200 0.0417 0.4732 0.5843 0.5505 0.7695 0.8805 0.6228 0.6707 0.5955 0.4152 0.7615 0.6083 0.170154 -0.076206 0.643006 26.46124 -70.67513 2.027753 Mean dependent var S.D.dependentvar Akaike info criterion Schwarz criterion F-statistic Prob(F-statistic) n ua al pl • Variable ll fu oi m tz a nh z an n va t re 71 (Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level Lu At least a k =f (k =2; 20) 0.149206 0.619823 2.158932 2.737698 0.690672 0.814249 om Hypothesis H 1: l.c a gm -0 2-a -a 20- Hypothesis H0 : k Source: Author's calculation jm ht vb R-squared Adjusted R-squared S.E of regression Sum squared resid Log likelihood Durbin-Watson stat n va LOG(QI) (LOG(QI))"2 (LOG(QI))*(LOG(PM)) (LOG(QI) )*(LOG(TC)) (LOG( QI))*(LOG(PSD)) (LOG(QI))*X LOG(PM) (LOG(PM) )"2 (LOG(PM)) *(LOG(TC)) (LOG(PM))*(LOG(PSD)) (LOG(PM))*X LOG(TC) (LOG(TC) )"2 (LOG(TC))*(LOG(PSD)) (LOG(TC))*X LOG(PSD) (LOG(PSD))"2 (LOG(PSD))*X X (Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level - - nR2 = 84*0.170154= 14.29296 and p-value = 0.766353> 10% leading to Maintain H0 It means that there is no heteroscedasticity in restricted model (Nguyen Trong Hoai (2007)) h ng ie p Table Appendix 2.3: The results of multicollinearity Test of restricted regression w Restriced model QI PM TC PSD n lo ad th i uy yj Rii 0.054845 0.025265 0.451585 0.043284 VIF=l/(1- Rii 2) 1.058028 1.02592 1.823437 1.045242 Source: Author's calculation n ua al pl Table Appendix 2.3 show that Rij • 1NIF 0.945155 0.974735 0.548415 0.956716 < Ru (0.604688) and, thus Variance - Inflation Factor (VIF) is used to test the problem of multicollinearity (1 - ru2) n va VIF = - - ll fu oi m All calculated VIF is smaller than 10, and it means that there 1s no tz a nh multicollinearity arising in the restricted model (Gujarati, 1995) z k jm ht vb om l.c gm Lu an n va t re 72 (Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level (Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level APPENDIX3 Use Wald test to choice model the restricted model or the unrestricted model ng Table Appendix 3: The results of Wald test ep hi Wald Test: Equation: LOG(CO) Test Statistic df Probability 0.669570 2.678279 (4, 74) 0.6151 0.6130 Value Std Err 0.133387 -0.161014 0.087189 -0.043971 0.090620 0.314218 0.235856 0.266694 w Value n lo F-statistic Chi-square ad u yj th Null Hypothesis Summary: p yi Normalized Restriction(= 0) an n va C(5) C(6) C(8) lu • la C(2) ll fu Restrictions are linear in coefficients oi m Source: AuJhor's calculation at nh Hypothesis H0 : a 2= a = a = a = (Use restricted model) z Hypothesis H 1: At least a ora ora or as=/= (Use unrestricted model) z because P (F > 0.669570) = 0.6151> 0.05 leading to maintain Ho It means that restricted model can be used (Hoang Ngoc Nham, 2007, Part I, pp 41-44) vb k jm ht om l.c gm n a Lu n va t re 73 (Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level (Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level APPENDIX4 Chart Appendix 4.1: The Provincial Competitiveness Index ranking in 2005 h ng ie p 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 76.82 70 65.65.029468.56 C::::::::::;::::::::::::;:::::::::::::::::::::::::::::::::::::::::::::::::::J 64.14 c:===============:::::::J 61.62.3993 C::================:::~ 61.29 c===============~ 61.13 C::::=~=============::=~ 61.09 C::::::::::::::::::::::::::::::::::::::::::::====::::l 60.60 c===============:::J 60.44 c===============:=J C::=========:::::;:::::::::::::::::=J 59.60.7023 r==============:::::J 59.59.6516 c==============:=:J t::=~=============:::~ 59.40 r=============:=:J 59.6155 c==============::J 58 ~==============:::! 58.49 58.06 t::::::::::;::::::::::::::::::::::::::::::::::::::::::::::=J 57.44 ~=============:::J 56.77 c============~ 56.25 c============:=:J 55.89 c============::::J 55 63 ~============:::~ 54.08 53.97 r===========:=:J 53.53.0376 r========:::::::::::::::::J51.67 c=========:J47.49.9950.2990 t:::=======:::::J47.06 P:='3· lE,•i:· ·•·:I·=: : :==:: J 45.45.7997 t: •·: Z•· Z·•: : ;: : : : : : : !41 : : : 2:J144.45 38.81 ~ Binh Duong Da Nang w Vinh Long n Ben Tre lo Vinh Phuc ·- _ ·-~ -· ~ - ~ ad Dong Nai Can Tho Kien Giang Binh Dinh Phu Yen HaNoi Quang Nam HCM C BRVT Dong Thap ~========:::::J Lu an t:::=~=====:::J n va Ninh Thuan ~==========:=~ om Nam Dinh l.c Quang Ngai BinhPhuoc ~=========::::;::::::J An Giang Thanh Hoa gm HaTinh k Quang B inh ~===========::::J jm Ha Nam ht Binh Thuan vb Soc Trang Khanh Hoa z Tien Giang tz TT-Hue Tra Vinh ~=============:=:J a nh LongAn Bac Ninh Tay Ninh oi m HaiPhong ll fu NgheAn ~=~============:::::::J60.32 n va Hung Yen n ua al pl Quang Tri i uy yj Thai Binh Hai Duong ~================::=~ th Quang Ninh NinhBinh} t re Ha Tay Source: The VNCI & VCCI 2005 74 (Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level (Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level (Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level(Luận.văn).the.imfact.of.transaction.cost.on.competitiveness.level case.study.in.vietnam.at.the.provincial.level