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The Impact of the Economic Stimulus on Domestic, Private Enterprises


  • Anh Nguyen Ngoc

    () (Development and Policies Research Center (DEPOCEN), Vietnam.)

  • Nhat Nguyen Duc

    () (Development and Policies Research Center (DEPOCEN), Vietnam.)

  • Chuc Nguyen Dinh

    () (Development and Policies Research Center (DEPOCEN), Vietnam.)


In the year 2008 and the first half of 2009, the world witnessed the unfolding and heavy repercussions of the global financial crisis which affected Vietnam, among others, through the reduction of investments inflow, lower global commodity prices and trade. The government of Vietnam has acted quickly with its stimulus package, including a 4% interest rate subsidy for enterprises with the objective of preventing the economy from falling further. While there are some anecdotal evidences about the effectiveness of the stimulus package, there is no systematic evidence of the impact of the stimulus package. This paper makes use of the PCI 2008 enterprise survey data, a unique dataset which is only recently made by available to investigate the impact of the 4% interest rate subsidy component of the stimulus package. We find strong statistical evidence that the 4% interest rate subsidy has positive and important impacts on the enterprises, easing the severe effects of the global crisis.

Suggested Citation

  • Anh Nguyen Ngoc & Nhat Nguyen Duc & Chuc Nguyen Dinh, 2011. "The Impact of the Economic Stimulus on Domestic, Private Enterprises," Working Papers 06, Development and Policies Research Center (DEPOCEN), Vietnam.
  • Handle: RePEc:dpc:wpaper:0611

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    References listed on IDEAS

    1. John Rand, 2007. "‘Credit Constraints and Determinants of the Cost of Capital in Vietnamese Manufacturing’," Small Business Economics, Springer, vol. 29(1), pages 1-13, June.
    2. Sumon Kumar Bhaumik & Saul Estrin & Klaus E Meyer, 2007. "Determinants of Employment Growth at MNEs: Evidence from Egypt, India, South Africa and Vietnam," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 49(1), pages 61-80, March.
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    Cited by:

    1. Huynh, Phu. & Parisotto, Aurelio., 2012. "Case studies of policy coherence initiatives in developing Asia," ILO Working Papers 994714213402676, International Labour Organization.
    2. repec:ilo:ilowps:471421 is not listed on IDEAS


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