Economics & Sociology

ISSN: 2071-789X eISSN: 2306-3459 DOI: 10.14254/2071-789X
Index PUBMS: f5512f57-a601-11e7-8f0e-080027f4daa0
Article information
Title: Local Government Involvement in Small Tourism Firms Investment: The Case of Phu Tho Province, Vietnam
Issue: Vol. 11, No 2, 2018
Published date: 06-2018 (print) / 06-2018 (online)
Journal: Economics & Sociology
ISSN: 2071-789X, eISSN: 2306-3459
Authors: Ho Chi Dung
Vietnam National University, University of Economics and Business

Pham Thi Kim Thanh
National Economics University, Hanoi, Vietnam

Dinh Van Oanh
National Economics University, Hanoi, Vietnam

Nguyen Hoai Long
National Economics University, Hanoi, Vietnam
Keywords: local government involvement, private investment, small firms, tourism, Vietnam
DOI: 10.14254/2071-789X.2018/11-2/7
Index PUBMS: b791a07e-cde6-11e8-92b1-901b0efa6e97
Language: English
Pages: 97-111 (15)
JEL classification: D02, O17, P31

Small tourism firms in developing countries like Vietnam have proven to be a rapidly growing sector of regional tourism industries and this sector development is being promoted as a path for enhancing local economies. However, due to typical characteristics of tourism, it requires the government to play an active role in facilitating and promoting its development. The current literature is unclear regarding the relationship between small tourism firms and local government involvement. Hence, this study aims to determine the local government involvement in small firms’ investment, and reports an empirical test on 209 small tourism firms in Phu Tho province, Vietnam. The results support the general hypothesis that active government involvement, both managerial and developmental, is positively related to the investment intention of small tourism firms. The research demonstrates that policy and operation implementation along with public investment in generating local tourism demand of local government have the most robust effects on these firms’ investment decisions, among other factors.


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