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

Author

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  • Wignaraja, Ganeshan

    (Asian Development Bank Institute)

Abstract

The Association of Southeast Asian Nations (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.

Suggested Citation

  • Wignaraja, Ganeshan, 2012. "Engaging Small and Medium Enterprises in Production Networks: Firm-level Analysis of Five ASEAN Economies," ADBI Working Papers 361, Asian Development Bank Institute.
  • Handle: RePEc:ris:adbiwp:0361
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    References listed on IDEAS

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    Cited by:

    1. Wignaraja, Ganeshan & Krüger, Jens & Tuazon, Anna Mae, 2013. "Production Networks, Profits, and Innovative Activity: Evidence from Malaysia and Thailand," ADBI Working Papers 406, Asian Development Bank Institute.
    2. Yap, Josef T., 2014. "ASEAN Community 2015 : managing integration for better jobs and shared prosperity in the Philippines," ILO Working Papers 994869993402676, International Labour Organization.

    More about this item

    Keywords

    small and medium enterprises; production networks; asean; intra-regional trade;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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