Appendix 1: Correlation Matrix
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13)
Tourist arrivals (1)
Domestic tourist arrivals (2) 0.42
Foreign tourist arrivals (3) 0.92 0.13
Length of stay (4) 0.96 0.39 0.89
Domestic tourist length of stay (5) 0.41 0.94 0.13 0.41
Foreign tourist length of stay (6) 0.89 0.11 0.97 0.91 0.12
Local environmental governance (7) -0.01 0.01 -0.01 -0.04 0.00 -0.04
Firm size (8) 0.17 0.18 0.13 0.16 0.18 0.11 0.01
Lagged revenue incomes (9) 0.45 0.38 0.33 0.47 0.38 0.33 -0.01 0.57
Forest wood consumed (10) -0.04 -0.01 -0.04 -0.04 -0.01 -0.05 0.40 0.04 0.00
Processed wastes (11) 0.00 -0.02 0.00 0.03 0.00 0.03 -0.49 -0.03 0.00 -0.59
Libraries (12) -0.01 -0.02 -0.01 0.01 -0.01 0.02 -0.67 -0.04 -0.01 -0.35 0.40 Books (13) -0.03 -0.02 -0.03 0.00 -0.01 0.01 -0.57 -0.03 -0.02 -0.34 0.37 0.82 Note: All correlation coefficients are significant at 5% level.
Appendix 2: Robustness Checks Table A2.1: OLS Estimation
(1) (2) (3) (4) (5) (6) Total Tourist arrivals Domestic Tourist arrivals Foreign Tourist arrivals Total Staying days Domestic length of stay Foreign length of stay Local Environmental Governance Quality -4.259 0.020 -3.409 -22.209** -0.410 -16.525**
(2.752) (0.205) (2.363) (8.787) (0.483) (6.491) Local Environmental Governance Quality Squared 0.377 -0.009 0.303 2.155** 0.028 1.602** (0.300) (0.022) (0.257) (0.954) (0.051) (0.705) Firm size 1.346*** 0.214*** 0.769*** 4.274*** 0.569*** 2.049*** (0.164) (0.027) (0.130) (0.536) (0.073) (0.357) Private firm 0.354 0.100 0.207 2.625 0.190 1.235 (0.951) (0.159) (0.760) (2.477) (0.419) (1.860) Foreign-owned firm 3.336 1.667*** -2.322* 14.257** 4.730*** -5.883* (2.268) (0.432) (1.259) (7.156) (1.188) (3.375) Lagged revenue incomes 0.378*** 0.024*** 0.317*** 1.129*** 0.056*** 0.911***
(0.036) (0.004) (0.033) (0.112) (0.009) (0.093) Constant 6.420 -0.527 5.774 38.575** -0.277 31.506** (6.094) (0.473) (5.265) (19.485) (1.116) (14.412) VIF 1.253 1.524 1.262 1.751 1.662 1.254 Observations 3,165 3,165 3,165 3,165 3,165 3,165 R-squared 0.193 0.183 0.131 0.190 0.195 0.129 Root MSE 4.958 0.551 3.896 1.536 1.457 1.258 F-test p_value 0.000 0.000 0.000 0.000 0.000 0.000
Note: The dependent variable in columns (1)-(3) is tourist arrivals; the dependent variable in columns (4)-(6) is length of stay (in days). All estimations include full sets of 63 provincial dummies. Standard errors and test statistics are asymptotically robust to heteroscedasticity and are clustered to the provincial level. The estimator is Ordinary Least Squared (OLS). VIF is variance inflation factor test for multicollinearity. *** indicates significant at 1%. ** indicates significant at 5%. * indicates significant at 10%.
Table A2.2: Multi-level Estimation (1) (2) (3) (4) (5) (6) Total Tourist arrivals Domestic Tourist arrivals Foreign Tourist arrivals Total Staying days Domestic length of stay Foreign length of stay Local Environmental Governance Quality -2.824** 0.070 -2.106** -15.502*** -0.194 -11.409***
(1.256) (0.174) (1.061) (3.878) (0.440) (2.907) Local Environmental Governance Quality Squared 0.253* -0.011 0.187* 1.518*** 0.014 1.116***
(0.133) (0.019) (0.112) (0.411) (0.047) (0.308) Firm size 0.906*** 0.191*** 0.416*** 2.929*** 0.488*** 1.132*** (0.059) (0.008) (0.050) (0.184) (0.022) (0.139) Private firm 0.496 0.111** 0.288 2.772** 0.247* 1.408* (0.361) (0.052) (0.306) (1.125) (0.133) (0.846) Foreign-owned firm 4.198*** 1.773*** -2.075*** 16.798*** 5.067*** -5.308*** (0.665) (0.095) (0.563) (2.073) (0.246) (1.559) Lagged revenue incomes 0.569*** 0.020*** 0.507*** 1.666*** 0.050*** 1.422***
(0.024) (0.003) (0.020) (0.075) (0.009) (0.056) Constant 3.040 -0.535 2.368 23.059** -0.548 18.232*** (2.964) (0.407) (2.501) (9.113) (1.026) (6.825) VIF 5.251 5.635 5.114 5.698 5.897 5.357 Random parameters Sigma vg 0.863*** 0.054*** 0.669*** 1.912*** 0.112*** 1.322*** Sigma e 4.294*** 0.616*** 3.634*** 13.384*** 1.587*** 10.065*** Observations 3,165 3,165 3,165 3,165 3,165 3,165 LR test Chi-squared 882.434 815.801 651.124 929.864 879.981 619.018 Prob>Chi-squared 0.000 0.000 0.000 0.000 0.000 0.000 ICC 0.473 0.562 0.456 0.425 0.511 0.417 R-squared 0.187 0.174 0.165 0.221 0.184 0.152
Note: The dependent variable in columns (1)-(3) is tourist arrivals; the dependent variable in columns (4)-(6) is length of stay (in days). Standard errors and test statistics are asymptotically robust to heteroscedasticity and are clustered to the provincial level. VIF is variance inflation factor test for multicollinearity. The estimator is multi-level technique. Firms are set at level 1 and provinces are set at level 2. Sigma 𝑣𝑔 and Sigma 𝑒 report the estimated random-effect parameters. ICC is the intraclass correlation coefficient. *** indicates significant at 1%. ** indicates significant at 5%. * indicates significant at 10%.
Table A2.3: Samples without Hanoi and Hochiminh Cities (1) (2) (3) (4) (5) (6) Total Tourist arrivals Domestic Tourist arrivals Foreign Tourist arrivals Total length of stay Domestic length of
stay length of stayForeign
Local Environmental Governance Quality -11.695* -0.873 -6.606 -48.599** -4.260** -28.705*** (7.035) (0.810) (4.840) (18.994) (1.937) (10.995) Local Environmental Governance Quality Squared 1.150 0.082 0.640 4.807** 0.415** 2.825**
(0.712) (0.082) (0.490) (1.927) (0.197) (1.116) Firm size 0.592*** 0.150*** 0.265** 1.751*** 0.450*** 0.551* (0.168) (0.032) (0.135) (0.460) (0.078) (0.314) Private firm 0.188 0.154* -0.306 1.366 0.311 -0.349 (0.737) (0.092) (0.588) (1.387) (0.293) (1.169) Foreign-owned firm 4.108*** 1.683*** -2.015 14.677*** 2.570*** -6.318 (1.167) (0.460) (1.490) (3.992) (0.913) (4.122) Lagged revenue incomes 0.365*** 0.020*** 0.298*** 0.997*** 0.041*** 0.731*** (0.067) (0.005) (0.053) (0.221) (0.016) (0.137) Constant 25.569 1.726 14.886 109.313** 9.295* 66.834** (16.938) (1.969) (11.536) (45.688) (4.747) (26.143) VIF 5.142 5.125 5.221 5.321 5.127 5.265 Hansen (J) p_value 0.495 0.515 0.377 0.793 0.452 0.550 SW F-test p_value 0.000 0.000 0.000 0.000 0.000 0.000 Observations 1,099 1,099 1,099 1,099 1,099 1,099 R-squared 0.108 0.105 0.067 0.090 0.108 0.048 Root MSE 3.668 0.587 1.365 2.364 3.669 2.514
Note: The dependent variable in columns (1)-(3) is tourist arrivals; the dependent variable in columns (4)-(6) is length of stay (in days). All estimations include full sets of 63 provincial dummies. Standard errors and test statistics are asymptotically robust to heteroscedasticity and are clustered to the provincial level. Endogenous variable is local environmental governance variable. The estimator is IV-GMM technique. The IVs are forest wood consumed, processed wastes, library, and books. VIF is variance inflation factor test for multicollinearity. Hansen (J) is over-identification test, under the null that the overidentifying restrictions are valid, the statistic is asymptotically distributed as a chi-square variable. SW F-test is the Sanderson-Windmeijer first-stage chi-squared and F statistics, under the null that the local environmental governance variable is unidentified. *** indicates significant at 1%. ** indicates significant at 5%. * indicates significant at 10%.
Table A2.4: Hotel Performance
Total Tourist arrivals Domestic Tourist arrivals Foreign Tourist arrivals Total length of stay Domestic length of stay Foreign length of stay
Local Environmental Governance Quality -2.288 0.808 -4.122*** -3.115 -2.526 -7.809** (3.959) (3.565) (1.517) (8.609) (4.981) (3.163) Local Environmental Governance Quality Squared 0.311 -0.037 0.440** 0.409 0.323 0.828** (0.423) (0.374) (0.174) (0.924) (0.524) (0.358) Firm size 1.510*** 0.835*** 0.955*** 2.708*** 1.254*** 1.822*** (0.400) (0.211) (0.237) (0.726) (0.297) (0.461) Private firm -0.121 -0.043 -0.002 -0.307 -0.172 -0.083 (0.183) (0.116) (0.071) (0.195) (0.133) (0.134) Foreign-owned firm 2.758** -1.723*** 2.194*** 6.629*** -2.255*** 4.769*** (1.257) (0.359) (0.852) (2.363) (0.578) (1.820) Lagged revenue incomes 0.151*** 0.122*** -0.026 0.164* 0.164*** -0.094
(0.046) (0.032) (0.037) (0.094) (0.045) (0.077) Constant 2.396 -3.650 8.083** 2.160 2.784 15.468** (9.090) (8.107) (3.336) (19.371) (11.293) (7.016) VIF 6.124 6.874 6.113 6.116 6.214 6.332 Hansen (J) p_value 0.641 0.513 0.786 0.576 0.291 0.840 SW F-test p_value 0.000 0.000 0.000 0.000 0.000 0.000 Observations 7,099 7,099 7,099 7,099 7,099 7,099 R-squared 0.177 0.117 0.180 0.195 0.158 0.181 Root MSE 4.336 1.662 3.854 3.667 5.214 2.781
Note: The sample under investigation is hotels operating in Vietnam. The dependent variable in columns (1)-(3) is tourist arrivals; the dependent variable in columns (4)-(6) is length of stay (in days). All estimations include full sets of 63 provincial dummies. Standard errors and test statistics are asymptotically robust to heteroscedasticity and are clustered to the provincial level. Endogenous variable is local environmental governance variable. The estimator is IV-GMM technique. The IVs are forest wood consumed, processed waste, libraries, and books. VIF is variance inflation factor test for multicollinearity. Hansen (J) is over-identification test, under the null that the overidentifying restrictions are valid, the statistic is asymptotically distributed as a chi-square variable. SW F-test is the Sanderson-Windmeijer first-stage chi-squared and F statistics, under the null that the local environmental governance variable is unidentified. *** indicates significant at 1%. ** indicates significant at 5%. * indicates significant at 10%.
Table A2.5a: Mediator Variables
Note: The variables is obtained from the PCI dataset. More about the PCI index is available at: http://eng.pcivietnam.org/
Table A2.5b: Estimated Mediator Effects
Tourist arrivals Length of stay Foreign tourist arrivals Foreign tourist length of stay Time cost Corruption Time cost Corruption Time cost Corruption Time cost Corruption Direct effect -0.247*** 0.079 -0.913*** 0.042 -0.183*** 0.078 -0.662*** 0.103 Indirect effect -0.039** -0.366*** -0.112** -1.067*** -0.018** -0.279*** -0.091** -0.856***
Total effect -0.286*** -0.286*** -1.025*** -1.025*** -0.201*** -0.201*** -0.753*** -0.753***
Note: The estimator is structural equation modelling technique. All estimations include a full set of control variables as in the main regression equation. Time cost is a proxy of transaction costs. Corruption is a proxy of institutional conflicts. *** indicates significant at 1%. ** indicates significant at 5%. * indicates significant at 10%.
Table A2.6: Standardized Regression Coefficients
Time costs Measures how much time firms waste on bureaucratic compliance, as well as how often and for how long firms must shut down their operations for inspections by local regulatory agencies. The indicator ranges from 1 to 10; the higher the score, the lower the time waste.
6.84 0.63 4.91 8.90
Informal charges (Corruption)
Measures how much firms pay in bribes, how much of an obstacle those extra fees pose for their business operations, whether payment of those extra fees results in expected results or "services," and whether provincial officials use compliance with local regulations to extract rents. The indicator ranges from 1 to 10; the higher the score, the better the corruption controls.
(1) (2) (3) (4) (5) (6) Total Tourist arrivals Domestic Tourist arrivals Foreign Tourist arrivals Total Staying days Domestic length of stay Foreign length of stay Local Environmental Governance Quality -0.117** -0.113** -0.150*** -0.185*** -0.122*** -0.220***
(0.049) (0.047) (0.047) (0.047) (0.045) (0.042) Local Environmental Governance Quality Squared 0.021 0.026 0.033** 0.042*** 0.030* 0.055*** (0.017) (0.016) (0.016) (0.016) (0.015) (0.014) Firm size 0.153*** 0.232*** 0.063 0.147*** 0.229*** 0.050 (0.048) (0.053) (0.042) (0.047) (0.052) (0.041) Private firm 0.310** 0.175 0.281* 0.317* 0.152 0.295** (0.146) (0.330) (0.143) (0.164) (0.324) (0.149) Foreign-owned firm 1.238* 2.732*** -0.221 1.625** 3.211*** -0.215 (0.669) (0.916) (0.445) (0.698) (1.007) (0.463) Lagged revenue incomes 0.214*** 0.096*** 0.223*** 0.221*** 0.095*** 0.230*** (0.026) (0.022) (0.027) (0.026) (0.021) (0.028) Constant -0.384*** -0.271 -0.355** -0.410** -0.244 -0.387*** (0.145) (0.325) (0.142) (0.162) (0.319) (0.147) VIF 2.268 2.894 2.336 2.567 2.541 2.555 Hansen (J) p_value 0.221 0.364 0.114 0.094 0.125 0.045 SW F-test p_value 0.000 0.000 0.000 0.000 0.000 0.000 Observations 3,165 3,165 3,165 3,165 3,165 3,165 R-squared 0.136 0.152 0.086 0.141 0.166 0.075 Root MSE 5.331 2.964 2.997 1.241 2.336 3.014
Note: The sample under investigation is hotels operating in Vietnam. The dependent variable in columns (1)-(3) is tourist arrivals; the dependent variable in columns (4)-(6) is length of stay (in days). All estimations include full sets of 63 provincial dummies. Standard errors and test statistics are asymptotically robust to heteroscedasticity and are clustered to the provincial level. Endogenous variable is local environmental governance variable. The estimator is IV-GMM technique. The IVs are forest wood consumed, processed waste, libraries, and books. VIF is variance inflation factor test for multicollinearity. Hansen (J) is over-identification test, under the null that the overidentifying restrictions are valid, the statistic is asymptotically distributed as a chi-square variable. SW F-test is the Sanderson-Windmeijer first-stage chi-squared and F statistics, under the null that the local environmental governance variable is unidentified. *** indicates significant at 1%. ** indicates significant at 5%. * indicates significant at 10%.
