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Social networks, geographic proximity, and firm performance in Vietnam

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  • Emma Howard

Abstract

This paper uses panel data to assess the relative importance of social networks and geographic proximity to micro, small, and medium enterprises in Vietnam. The results suggest that a larger social network, and hiring employees mainly through social networks, are both correlated with higher value added per worker. The number of government officials and civil servants in a firm's network emerges as particularly important. When the quality of contacts is controlled for, firms with tighter social networks have, on average, higher value added per worker.

Suggested Citation

  • Emma Howard, 2017. "Social networks, geographic proximity, and firm performance in Vietnam," WIDER Working Paper Series wp-2017-69, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2017-69
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    File URL: https://www.wider.unu.edu/sites/default/files/wp2017-69.pdf
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