This paper aims to fill this gap through the investigation of the influence of formal economic institutions such as market entry, property right protection, anti-corruption mechanisms, and informal charges on private investment across provinces in Vietnam. | Journal of Asian Business and Economic Studies Volumn 26, Special Issue 01 (2019), **-** Journal of Asian Business and Economic Studies A provincial analysis of formal economic institutions and private investment in Vietnam a DIEP GIA LUAT , BUI THANH TRUNG a,b University of Economics Ho Chi Minh City ARTICLE INFO ABSTRACT Received: 6 Sep, 2017 Formal economic institutions are incentive-motivated mechanisms under the control of the government and are widely accepted as an important factor shaping investment behavior. However, the relative significance of aspects of formal economic institutions has remained ambiguous, especially in a developing economy like Vietnam. This paper aims to fill this gap through the investigation of the influence of formal economic institutions such as market entry, property right protection, anti-corruption mechanisms, and informal charges on private investment across provinces in Vietnam. The empirical results suggest that the deregulation of market entry is essential for private investment. By contrast, both property right protection and anticorruption mechanisms have unexpected outcomes as their improvements are detrimental to private investment. The effect of informal charges is consistent with the prediction of the rent-seeking hypothesis. Revised: 27 Mar, 2018 Accepted: 1 Oct, 2018 Available online JEL classification: D02, D73, L38 Keywords Formal institutions; Property right; Market entry; Corruption. a b gialuat@, * Corresponding author trungbt@ Please cite this article as: Diep, G. L. & Bui, T. T. (2018). A provincial analysis of formal economic institutions and private investment in Vietnam. Journal of Asian Business and Economic Studies, 25(Special Issue 02), **–** b Diep Gia Luat & Bui Thanh Trung / JABES Vol. 26(Special Issue 01), 2019 1. Introduction Private investment, like consumer spending, is an integral component of economic growth. However, it .
