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How firm characteristics affect the level of constrain to growth : An empirical analysis of micro and small firms in Vietnam

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  • Thi Quynh Trang Do

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

Economic literature has introduced large theories on critical role of micro and small firms (MSEs) in the economic development. Particularly in developing countries, the development of the sectore has become a channel of poverty reduction by providing job opportunities and creating welfares. Besides, MSEs might be seen as embryonic form of sizable firms in the future, then contribute to the innovation process and economic growth. Consequently, promoting the growth of micro and small firms is in the center of interest of many developing countries, so does the case of Vietnam. By investigating the importance of firm characteristics with regard to the barriers that facing MSE in the growth process, this analysis brings some more light into the sector that unfortunately is still an under researched area. Using firm sample drawing from the Survey on Household's Living Standard in 2004 in Vietnam, we find that firms with different characteristics, among them : firm size, firm age, legal status, industrial sector and location, experiencing different levels of constraints. The level of signification of firm characteristics differs from barriers to barriers. In general, more sizable firms have often to face with higher level of constraints. These results enable policymakers to create more suitable MSEs fostering policies which better account for the different obstacles due to firm heterogeneity.

Suggested Citation

  • Thi Quynh Trang Do, 2009. "How firm characteristics affect the level of constrain to growth : An empirical analysis of micro and small firms in Vietnam," Post-Print halshs-00429732, HAL.
    • Handle: RePEc:hal:journl:halshs-00429732
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00429732
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    1. Hala Abou-Ali & Reham Rizk, 2015. "MSEs Informality and Productivity: Evidence from Egypt," Working Papers 916, Economic Research Forum, revised May 2015.

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