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moderator: (1) Geo_dum, a dummy variable that takes the value of one for firms
headquartered in the Southeast region of Vietnam and zero otherwise; (2) Size_dum,
which takes the value of 1 if firm size is bigger than the median for the large firms and

0 otherwise for the small firms; (3) Business_dum is dummy variable that equals one if
firms belong to stock, insurance and bank sections.
4.3.1. Effect of public administration conditional on geographic regions
The Southeast Region is the largest economic hub in the country. However, during
the COVID-19 pandemic, the growth rate of the Southeast Region has tended to
decrease and is lower than the national average. From this, solutions for technological
innovation and advanced digital technology are proposed to enhance the quality of

growth in the Southeast Region. With an area of 9% and a population of 20%, the
Southeast Region has contributed over 30% of the GDP, approximately 45% of the total
state budget revenue, and more than 32% of the national export turnover. 117 Since 2020,
the Southeast Region has been actively implementing a digitalization strategy for socio-
economic activities, rapidly adopting various forms of industry technologies in the
management of society, the economy, and business operations of enterprises. All

regional provinces have local technology development strategies with specific action
programs. Therefore, we investigate whether the Southeast region and other regions
influence the association between public administration and corporate technology
investment differently.
Table 3 displays the estimation results of extended models with interaction terms
of public administration variables with the firm’s geographic factor. The estimated
coefficients of the interaction terms are negative and statistically significant. The
evidence implies that the Southeast region is a potential factor countervailing the

increased public administration related to the environment associated with corporate
technology investment.
Table 3. Effect of public administration conditional on geographic regions

(1) (2) (3) (4)
Variable TEC1 TEC1 TEC2 TEC2

Environmental
governance -2.608*** -2.741*** -0.001*** -0.002***
(-7.02) (-6.74) (-7.80) (-7.96)
Geo_dum 33.211*** 33.351*** 0.013*** 0.014***
(16.59) (17.15) (15.28) (15.06)
Environmental
governance
#Geo_dum -11.355*** -11.329*** -0.004*** -0.005***
(-18.88) (-19.38) (-17.45) (-17.18)

117 https://www.hcmcpv.org.vn/tin-tuc/lien-ket-dua-dong-nam-bo-tro-thanh-vung-phat-trien-nang-dong-co-toc
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