Based on a unique panel dataset consisting of both formal and informal firms surveyed every other year from 2005 to 2013, this paper explores the benefits of formalization to the government and firm employees in Vietnam. We find that formalization benefits the government by increasing the amount...

This paper examines the relationship between formalization and firm-level outcomes in Vietnam using a unique panel dataset. Results show that switching firms differ from informal nonswitching firms, confirming heterogeneity. We also find that becoming formal leads to increased profits, value...

We analyse policy makers' incentives to fight corruption under different institutional qualities. We find that 'public officials', even when non-corrupt, significantly distort anti-corruption institutions by choosing a lower detection probability when this probability applies to their own...