Abstract
Transport infrastructure plays an important role in promoting the socio-economic development in most countries. In particular, the development of road infrastructure is the basis for promoting enterprises development through expanding market access, lowering logistics cost and inputs cost, etc. The focal point of this paper is to estimate the impact of road infrastructure on firm performance through an empirical research in Cuu Long delta area, Vietnam. By applying the econometric models, the results from this study show that the positive relationship between road infrastructure and firm performance in Cuu Long delta area, and that the level of impact is different across business sectors.
Highlights
Economic growth and development in every region of each country depends on the development of the enterprises
This paper investigates the effect of road infrastructure on firm performance in Cuu Long delta area
The results shows that enhancing road infrastructure will effectively help to enhance the performance of the firms
Summary
Economic growth and development in every region of each country depends on the development of the enterprises. Good quality road and traffic infrastructure system will minimize transportation costs, as well as losses in the process of importing raw materials (input costs) It minimizes the risk of product distribution to the market (affecting output costs). The investment in the development of transport infrastructure is uneven across regions, especially in slow-growing regions like Cuu Long delta area. Choosing Cuu Long delta area for a case study that will specify the impact of transport infrastructure on enterprises in general and on enterprises in business sectors in particular. This research will help local, regional policymakers, as well as central government, to have better understanding on the impacts of road infrastructure development in an undeveloped region with a maze of rivers, swamps and islands
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