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Household enterprises in Vietnam : survival, growth, and living standards

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  • Vijverberg, WimP. M.
  • Haughton, Jonathan

Abstract

In Vietnam almost a quarter of adults worked in nonfarm household enterprises in 1998. Based on household panel data from the Vietnam Living Standards Surveys of 1993 and 1998, the authors find some evidence that operating an enterprise leads to greater affluence. The data show that nonfarm household enterprises are most likely to be operated by urban households, by those with moderately good education, and by the children of proprietors. The authors were able to construct a panel of nonfarm household enterprises; 39 percent of enterprises operating in 1993 were still in business in 1998. Those in the (more affluent) south of the country were less likely to survive, as were smaller and younger businesses. A pattern emerges from the data. In poor areas the lack of education, credit, and effective demand limits the development of nonfarm household enterprises. In rich areas there is the attraction of wage labor. Nonfarm household enterprises are thus most important in the period of transition, when agriculture is declining in importance but before the formal sector becomes established. The authors expect these enterprises to continue to play a modest supporting role in fostering economic growth in Vietnam.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2773.

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Date of creation: 28 Feb 2002
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Handle: RePEc:wbk:wbrwps:2773

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Related research

Keywords: Public Health Promotion; Housing&Human Habitats; Banks&Banking Reform; Municipal Financial Management; Microfinance; Banks&Banking Reform; Municipal Financial Management; Small and Medium Size Enterprises; Private Participation in Infrastructure; Microfinance;

References

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  1. Audretsch, David B., 1995. "Innovation, growth and survival," International Journal of Industrial Organization, Elsevier, Elsevier, vol. 13(4), pages 441-457, December.
  2. Bob Baulch & Truong Thi Kim Chuyen & Dominique Haughton & Jonathan Haughton, 2007. "Ethnic minority development in Vietnam," Journal of Development Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 43(7), pages 1151-1176.
  3. Agarwal, Rajshree & Audretsch, David B, 2001. "Does Entry Size Matter? The Impact of the Life Cycle and Technology on Firm Survival," Journal of Industrial Economics, Wiley Blackwell, Wiley Blackwell, vol. 49(1), pages 21-43, March.
  4. David Audretsch & Patrick Houweling & A. Thurik, 2000. "Firm Survival in the Netherlands," Review of Industrial Organization, Springer, Springer, vol. 16(1), pages 1-11, February.
  5. Baulch, Bob & Truong Thi Kim Chuyen & Haughton, Dominique & Haughton, Jonathan, 2002. "Ethnic minority development in Vietnam : a socioeconomic perspective," Policy Research Working Paper Series 2836, The World Bank.
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Citations

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Cited by:
  1. World Bank & Asian Development Bank, 2007. "Reducing Investment Climate Constraints to Higher Growth : Lao People's Democratic Republic Private Sector and Investment Climate Assessment," World Bank Other Operational Studies 7591, The World Bank.
  2. World Bank, 2003. "Vietnam Development Report 2004 : Poverty," World Bank Other Operational Studies 14651, The World Bank.
  3. Van der Walle, Dominique & Cratty, Dorothyjean, 2003. "Is the emerging nonfarm market economy the route out of poverty in Vietnam?," Policy Research Working Paper Series 2950, The World Bank.
  4. Tomomi Tanaka & Colin F. Camerer & Quang Nguyen, 2006. "Preferences, Poverty and Politics: Experimental and Survey Data from Vietnam," Levine's Bibliography 321307000000000054, UCLA Department of Economics.
  5. Tomomi Tanaka & Colin F Camerer & Quang Nguyen, 2006. "Poverty, politics, and preferences: Field Experiments and survey data from Vietnam," Levine's Bibliography 122247000000001099, UCLA Department of Economics.
  6. John Rand, 2007. "‘Credit Constraints and Determinants of the Cost of Capital in Vietnamese Manufacturing’," Small Business Economics, Springer, Springer, vol. 29(1), pages 1-13, June.
  7. Truong, T-D., 2002. "Gender and enterprise development in Vietnam under Doi-Moi : issues for policy, research and training," ISS Working Papers - General Series, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague 19122, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
  8. Benedikter, Simon & Waibel, Gabi & Birtel, Serge & Bui, Cuong The & Tran, Be Thanh, 2013. "Local Entrepreneurship in Vietnam’s Rural Transformation. A Case Study from the Mekong Delta," MPRA Paper 49866, University Library of Munich, Germany.
  9. Vu, Van Huong, 2012. "Private manufacturing SMEs survival and growth in Vietnam: The role of export participation," MPRA Paper 42489, University Library of Munich, Germany.
  10. World Bank, 2007. "Lao PDR - Private Sector and Investment Climate Assessment : Reducing Investment Climate Constraints to Higher Growth," World Bank Other Operational Studies 7707, The World Bank.

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