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Political connections and firm's formalization: Evidence from Viet Nam

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  • Duc Anh Dang
  • Hai Anh La

Abstract

The literature shows that political connections have different effects on firms' activities. However, the question of how political connections affect firms' formalization has not been explored. Using data from three waves of the Vietnam Small and Medium Enterprise Survey for the period from 2007 to 2011, this paper aims to examine the relationship between political connections and firms' formalization in Viet Nam. We find that firms with political connections increase their share of formal workers.

Suggested Citation

  • Duc Anh Dang & Hai Anh La, 2020. "Political connections and firm's formalization: Evidence from Viet Nam," WIDER Working Paper Series wp-2020-147, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2020-147
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    References listed on IDEAS

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    1. Agrawal, Anup & Knoeber, Charles R, 2001. "Do Some Outside Directors Play a Political Role?," Journal of Law and Economics, University of Chicago Press, vol. 44(1), pages 179-198, April.
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    Keywords

    Political connections; Formalization; Viet Nam;
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