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Factors affecting transportation’s development and spillover effects on neighboring provinces: the case of Ho Chi Minh, Vietnam

Cogent business & management, 2024-12, Vol.11 (1) [Peer Reviewed Journal]

EISSN: 2331-1975 ;DOI: 10.1080/23311975.2024.2308084

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  • Title:
    Factors affecting transportation’s development and spillover effects on neighboring provinces: the case of Ho Chi Minh, Vietnam
  • Author: Vu Thi Kim Hanh ; Nguyen Hong Nga
  • Subjects: Economics and Development; Development Economics; Business ; institutional factor ; SEM ; technological factor ; Transportation development ; transportation physical factor
  • Is Part Of: Cogent business & management, 2024-12, Vol.11 (1)
  • Description: ABSRACTThe objective of this study is to explore the influence of various factors on transportation development, considering their spillover effects on Gross Domestic Product (GDP) growth in neighboring provinces. The study utilizes time-series data from the transportation industry in Ho Chi Minh, Vietnam. Accordingly, a theoretical framework is constructed based on foundational theories. The methodology involves Structural Equation Modeling (SEM) analysis and its five steps of Goodness of Fit testing. The key findings include: (1) Mobile phones positively influence, while corruption control and state investment negatively impact goods labor productivity; (2) Provincial Competitiveness Index (PCI) and state investment positively influence both people labor productivity and people capital productivity; (3) Regarding spillover effects on neighboring provinces, mobile phones have a negative influence, while PCI positively impacts the GDP growth of Binh Phuoc. Mobile phones negatively affect GDP growth in Vung Tau and Dong Nai, whereas corruption control positively affects it in these provinces. Therefore, with regard to institutions, the government should regulate transportation industry activities towards environmental friendliness, such as developing PCI in the direction of a green environment or investing in green fuel for the transportation industry. As corruption control has both positive and negative effects, we recommend increasing corruption control towards a sustainable economy. Regarding technology, since mobile phones have both positive and negative effects, we suggest finding a balance to boost goods labor productivity. These results offer transportation policymakers and managers both theoretical and practical perspectives to improve the transportation industry’s development.
  • Publisher: Taylor & Francis Group
  • Language: English
  • Identifier: EISSN: 2331-1975
    DOI: 10.1080/23311975.2024.2308084
  • Source: Taylor & Francis Open Access
    ROAD: Directory of Open Access Scholarly Resources
    ProQuest Central
    DOAJ Directory of Open Access Journals
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