The impact of local firms on students’ intention to return and work in rural areas

Abstract

This research examines local firms’ effects on attracting students to return and work in rural areas. Data are collected using a convenience sampling method through online platforms. The research sample includes 606 rural-born students majoring in business, management, and economics at Ho Chi Minh City universities. The estimated results from Generalized Structural Equation Modeling (GSEM) and Structural Equation Modeling (SEM) reveal that many local firms increase the students’ envision of better non-farm self-employment and wage-employment opportunities, thereby enhancing their intention to return to work in rural areas. Based on the findings, this research offers policy implications related to the development of local firms.