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Engaging Small and Medium Enterprises in Production Networks : Firm-level Analysis of Five ASEAN Economies

  • Ganeshan Wignaraja

    (Asian Development Bank Institute (ADBI))

The Association of Southeast Asian Nations JEL Classification : F10, F23, O14 (ASEAN) small and medium enterprises (SMEs) are under scrutiny for their engagement in production networks following recent emphasis on increasing intra-regional trade, rebalancing, and inclusive growth in Asia. Using a data set covering 5,900 firms in five ASEAN economies at different stages of development, this paper analyses the participation of SMEs in production networks, determinants, and policy implications. It finds that although large firms dominate production network engagement in ASEAN economies, there are signs that SMEs have modestly increased their participation since the late-1990s. This is linked to firm-specific factors (e.g., firm size, foreign ownership, skills, technological capabilities, and access to credit) as well as a supportive business environment. Tackling residual supply-side and policy constraints can further the participation of ASEAN SMEs in production networks.

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Paper provided by East Asian Bureau of Economic Research in its series Governance Working Papers with number 23316.

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Date of creation: Jun 2012
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Handle: RePEc:eab:govern:23316
Contact details of provider: Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200
Web page: http://www.eaber.org

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