Empirical methodology: Statistical analysis and the case study approach 104

5.4.1 Statistical evidence of the impact of the PCI on selected outcome indicators

The statistical evidence of the impact of the PCI on selected outcome indicators will be considered in the research. The PCI research team uses statistical methods for three tasks: by regression analysis, the weights to be applied to the ten elements on which data have been collected to create a reliable index of governance performance; by factor analysis of the twelve inter-related initial condition variables, three uncorrelated factors that can be used to measure the initial advantages of different provinces; and regression analysis using the PCI and the initial conditions variables to separate out the effects of variations in governance performance across provinces on outcome variables, such as investment and profitability. The findings of the PCI researchers on this latter matter are reviewed in Chapter 6, in the context of their other analyses. This chapter also reports on new regression analyses undertaken by

the researcher, looking at the impact of variations in the PCI across provinces on total PIO, over the period 2005-08.

5.4.2 Limitations of the PCI and the related analyses

While the methods adopted by the PCI team are deemed acceptable for aggregate analysis, there are a number of limitations to their approach when a detailed investigation of the position of individual provinces is being undertaken. Several of these limitations are canvassed in these empirical chapters, and particular attention is given in Chapter 7 to one omission, the failure to take account of differences in transport11 and some related infrastructure across provinces. This matter is examined in Chapter 7 particularly in relation to the Red River Delta provinces.

5.4.3 The case study approach

The case study approach will be applied in chapters 7, 8 and 9. Chapters 7 and 8 are a closer look at reality and move more closely to concepts and processes of place marketing proposed in the previous chapters – the PCI effects on DPIO and FIO in case studies (selected provinces). The method moves to case-study analysis with an extension and a focus of following measuring criteria:

1. Performance indicators: The meaning of the PCI from Chapter 7 is broadened to considering the PCI sub-indices and the primary data gathered in the PCI surveys. As an overall index, the PCI can contain a possible bias which might derive from the methodology developed by the PCI research team to build up the PCI. By taking the PCI sub-indices and primary PCI data into account, this possibility of bias would be reduced and the assessment accesses more to reality

2. Outcome indicators: Chapter 6 considers various outcome indicators: investment growth, enterprise profits, GDP per capita, as well as PIO per capita in an overall evaluation. In the case study approach from Chapter 7, the focus outcome indicators are PIO per capita. The reasons are: i) while the growth of investment measures investors’ preferences, the PIO is able to measure actual results of investment. As argued in Chapter 3, both sellers and buyers’ benefits in exchange of place products

11 _{The transport in Viet Nam is classified into three levels according to the administration levels: national} transport managed by the central government, provincial transport managed by the provincial government and district/commune transport managed by the provincial or district or commune governments. Among them, the national transport is the most critical for the function to link a province to other provinces and economic centre. The national transport was not taken into account in the PCI research 2005-2008.

are generated during a process, in which investors consume place products, or in other words investors, do their business in the city/province. The PIO is the outcomes of this consumption. These outcomes are major sources for growth of local economies and businesses as well; ii) while GDP measures the whole economy, the PIO as the outcome of the private sector is more appropriate to the PCI, which measures economic governance for private sector development. For these reasons, PIO can reflect more directly and accurately the effect of the PCI.

Still for the objective of examining the effects of place marketing management in a profound manner, chapters 7 and 8 also investigate the question of how the implementation model could be applied in Vietnam by searching causes behind the effect. The case-study method is applied for a detailed and in-depth study by exploring processes within their naturally- occurring context(s) (in situ). Cross-case analysis helps to find underlying factors while exploring the processes. Specific features and advantages, which have significant influence on the attractiveness of a place and on the outcome, but skipped in the PCI research, are taken into consideration. The initial advantages and the possible impact of other factors are reassessed. In particular, Chapter 7 examines the PCI’s effects on DPIO and FIO and searches for underlying factors causing the effect in a group of eight provinces of the Red River Delta region. In general, these provinces have good development conditions. They have many similar features and initial conditions. Such a grouping continuously separates out the effect of similar initial advantages and therefore, the impact of the PCI is evaluated more accurately. Applying the same discipline, Chapter 8 studies the case of Ha Noi in comparison with HCM City, another big city with special advantages for place marketing. This chapter is a further investigation of the effects of the PCI and the PCI critical sub-indices on DPIO and FIO. Especially, Chapter 8 also traces back to the underlying factors, which impact on the PCI and explain the growth of the number of enterprises and investment in Ha Noi. The detailed investigation on the biggest cities, where nationally economic hubs are concentrated and the effect is complicated and multidirectional, is carried in out the last chapter (Chapter 9), to provide useful findings for an extended consideration of national institutions, economic policies and the legal system, which condition the operation of the model of place marketing,. The selection of provinces with high advantages derives from the fact that: i) the disadvantaged provinces in Vietnam find it are hard to perform an effective place marketing program due to restrictions of resource and management capacity, and hence they could not

provide enough data for an analysis; ii) as shown in the PCI reports, place marketing in high advantage provinces is being implemented in various levels. This is a good situation to examine whether the difference in PCI results in a difference in the outcome. Moreover, while other provinces lack resources for development, the high advantage cities/provinces need to play a role of a growing drive for the entire economy. Under this perspective, the selection has a practical significance. There are some other reasons for selecting the Red River Delta provinces for the research. In general, the provinces/cities possessing high advantage are located in the Southeast (the South) and Red River Delta (the North) regions. This fact is also shown in the PCI research (see figures 6.4 and 6.5). There might be differences between the South and the North in the background such as culture, people, nature and education which are possibly underlying factors influencing private business development and these factors are hardly scored exactly. For that reason, it would be a better solution to compare provinces within individual region. Secondly, the next chapter is an in- depth research of Ha Noi. Ha Noi is located in the Red River Delta region. The study of the Red River Delta province serves as a common background for moving further to the case of Ha Noi. During the investigation, Ha Noi and the Red River Delta could be compatible to making some comparisons without encountering regional deviation. Last, but not least, information of the Red River Delta provinces are easier to gather for the researcher.

Taking the evidence, findings provided by the previous chapters and looking back at the concepts and the model of place marketing management, Chapter 9 applies a synthetic evaluation method to consider:

 the factors and processes which are referred to as the internal processes in the model; and

 the issues in the national scale, which are referred as the external environment in the model.

Chapter 9 ends with conclusions on the applicability of the model to Vietnamese cities and provinces. It includes recommendations on necessary improvements that the central and provincial governments in Vietnam should implement to apply the model effectively.

Chapter 6

Urban Planning and Place Marketing in Vietnam: An Overall Evaluation of the PCI’s Effects on Economic Outcomes