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Does Managerial Capital also Matter Among Micro and Small Firms in Developing Countries?

Listed author(s):
  • Axel Demenet

    ()

    (DIAL, UMR 225, IRD, Paris, France, PSL Research University, Université Paris-Dauphine, LEDa, Paris, France)

The lack of managerial capital was recently put forward as a constraint for developing countries firms (Bruhn et al., 2010). While established for large and medium firms, its importance for micro enterprises has yet to be proven: evidence found in Development Economics and Entrepreneurial Studies is, at best, mixed. This paper uses a panel of Vietnamese micro, small and medium enterprises to investigate this question in a comparative manner. The data let building a multidimensional measure of Managerial Capital, and allows consistent estimates of firm-level productivity. Even though bias might still affect the estimation of the average influence of managerial capital on productivity, I am able to show that this influence is as important for micro firms as it is for medium ones.

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File URL: http://www.dial.ird.fr/media/ird-sites-d-unites-de-recherche/dial/documents/publications/doc_travail/2016/2016-12
File Function: First version, 2016
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Paper provided by DIAL (Développement, Institutions et Mondialisation) in its series Working Papers with number DT/2016/12.

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Length: 39 pages
Date of creation: Oct 2016
Handle: RePEc:dia:wpaper:dt201612
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