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Constraints to the growth of small firms in Northwest Myanmar

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  • Bah, El-hadj M.
  • Cooper, Geoff

Abstract

This paper uses survey data collected from Northwestern Myanmar to analyze business activity and determine the most binding constraints to firm growth. Most households in the region are operating informal firms with low earnings and no employees. The most binding constraints are related to external financing and competition. Firms that view access to informal credit as a major constraint are 9.6% less likely to invest and grow, on average, 5.7% less in 2008–2010. Restricted access to markets is also a major binding constraint, reducing the likelihood of investment up to 15.3% and income growth up to 6%.

Suggested Citation

  • Bah, El-hadj M. & Cooper, Geoff, 2015. "Constraints to the growth of small firms in Northwest Myanmar," Journal of Asian Economics, Elsevier, vol. 39(C), pages 108-125.
    • Handle: RePEc:eee:asieco:v:39:y:2015:i:c:p:108-125
    DOI: 10.1016/j.asieco.2015.06.002
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    More about this item

    Keywords

    Rural investment climate; Enterprise development; Poverty reduction; Small firms growth; Myanmar; O1; O5; L2;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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