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Household Entrepreneurship and Social Networks: Panel Data Evidence from Vietnam

Author

Listed:
  • Chi Huu Nguyen

    (DIAL - Développement, institutions et analyses de long terme)

  • Christophe Jalil Nordman

    (DIAL - Développement, institutions et analyses de long terme, LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique)

Abstract

Using a unique panel of household businesses for Vietnam, this paper sheds light on the links between households' and entrepreneurs' social networks and business performance. We address two related questions. The first question asks if we can find evidence of a differentiated effect of employment of members of the family versus hired workers on the business performance. A second question tackles the respective effects of various dimensions of social networks on business technical efficiency. The hypothesis is that, beyond the channel of labour productivity, entrepreneurs that are confronted with an unfavourable social environment may produce less efficiently and realise a lower output than what could be possible with the same amount of resources. We find evidence of a marginal productivity differential between family and hired labour and highlight results consistent with the presence of adverse social network effects faced by households running a business, in particular ethnic minorities. We also stress the importance of professional networks for successful entrepreneurship.

Suggested Citation

  • Chi Huu Nguyen & Christophe Jalil Nordman, 2017. "Household Entrepreneurship and Social Networks: Panel Data Evidence from Vietnam," Post-Print hal-03616432, HAL.
  • Handle: RePEc:hal:journl:hal-03616432
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    17. Rachmat Mulia & Elisabeth Simelton & Tan Quang Nguyen & Magnus Jirström, 2021. "Non-Farm Activities and Impacts beyond the Economy of Rural Households in Vietnam: A Review and Link to Policies," Sustainability, MDPI, vol. 13(18), pages 1-22, September.
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    19. Manh-Toan Ho & Ngoc-Thang B. Le & Manh-Tung Ho & Quan-Hoang Vuong, 2022. "A bibliometric review on development economics research in Vietnam from 2008 to 2020," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(5), pages 2939-2969, October.
    20. Margaryta Klymak, 2019. "The effect of foreign competition on family and network labour allocation," WIDER Working Paper Series wp-2019-39, World Institute for Development Economic Research (UNU-WIDER).
    21. Klingler-Vidra, Robyn & Tran, Ba Linh & Chalmers, Adam William, 2021. "Transnational experience and high-performing entrepreneurs in emerging economies: evidence from Vietnam," LSE Research Online Documents on Economics 110756, London School of Economics and Political Science, LSE Library.
    22. Santotomas Licimaco Aguilar-Pinto & Julio Cesar Quispe-Mamani & Dominga Asunción Calcina-Álvarez & Nelly Jacqueline Ulloa-Gallardo & Roxana Madueño-Portilla & Mindi Fabiola Lizárraga-Álvarez & Adderly, 2023. "Public Services in the Household and Their Effect on Poverty, Analysis for the Peruvian Case, 2021," Social Sciences, MDPI, vol. 12(6), pages 1-23, June.
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    25. Wang, Wenlue & Ren, Qian & Yu, Jin, 2018. "Impact of the ecological resettlement program on participating decision and poverty reduction in southern Shaanxi, China," Forest Policy and Economics, Elsevier, vol. 95(C), pages 1-9.

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    More about this item

    Keywords

    family labour; kinship and ethnic ties; sharing norms; social network capital; Informality; household business; panel; Vietnam;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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