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Household enterprises in Vietnam : survival, growth, and living standards

Author

Listed:
  • Vijverberg, WimP. M.
  • Haughton, Jonathan

Abstract

In Vietnam almost a quarter of adults worked in nonfarm household enterprises in 1998. Based on household panel data from the Vietnam Living Standards Surveys of 1993 and 1998, the authors find some evidence that operating an enterprise leads to greater affluence. The data show that nonfarm household enterprises are most likely to be operated by urban households, by those with moderately good education, and by the children of proprietors. The authors were able to construct a panel of nonfarm household enterprises; 39 percent of enterprises operating in 1993 were still in business in 1998. Those in the (more affluent) south of the country were less likely to survive, as were smaller and younger businesses. A pattern emerges from the data. In poor areas the lack of education, credit, and effective demand limits the development of nonfarm household enterprises. In rich areas there is the attraction of wage labor. Nonfarm household enterprises are thus most important in the period of transition, when agriculture is declining in importance but before the formal sector becomes established. The authors expect these enterprises to continue to play a modest supporting role in fostering economic growth in Vietnam.

Suggested Citation

  • Vijverberg, WimP. M. & Haughton, Jonathan, 2002. "Household enterprises in Vietnam : survival, growth, and living standards," Policy Research Working Paper Series 2773, The World Bank.
  • Handle: RePEc:wbk:wbrwps:2773
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    References listed on IDEAS

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    1. Audretsch, David B., 1995. "Innovation, growth and survival," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 441-457, December.
    2. David Audretsch & Patrick Houweling & A. Thurik, 2000. "Firm Survival in the Netherlands," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 16(1), pages 1-11, February.
    3. Baulch, Bob & Truong Thi Kim Chuyen & Haughton, Dominique & Haughton, Jonathan, 2002. "Ethnic minority development in Vietnam : a socioeconomic perspective," Policy Research Working Paper Series 2836, The World Bank.
    4. Bob Baulch & Truong Thi Kim Chuyen & Dominique Haughton & Jonathan Haughton, 2007. "Ethnic minority development in Vietnam," Journal of Development Studies, Taylor & Francis Journals, vol. 43(7), pages 1151-1176.
    5. Agarwal, Rajshree & Audretsch, David B, 2001. "Does Entry Size Matter? The Impact of the Life Cycle and Technology on Firm Survival," Journal of Industrial Economics, Wiley Blackwell, vol. 49(1), pages 21-43, March.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. John Rand, 2007. "‘Credit Constraints and Determinants of the Cost of Capital in Vietnamese Manufacturing’," Small Business Economics, Springer, pages 1-13.
    2. Tomomi Tanaka & Colin F. Camerer & Quang Nguyen, 2006. "Preferences, Poverty and Politics: Experimental and Survey Data from Vietnam," Levine's Bibliography 321307000000000054, UCLA Department of Economics.
    3. Dominique van de Walle & Dorothyjean Cratty, 2004. "Is the emerging non-farm market economy the route out of poverty in Vietnam?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 12(2), pages 237-274, June.
    4. Truong, T-D., 2002. "Gender and enterprise development in Vietnam under Doi-Moi : issues for policy, research and training," ISS Working Papers - General Series 19122, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    5. Marchetta, Francesca, 2012. "Return Migration and the Survival of Entrepreneurial Activities in Egypt," World Development, Elsevier, vol. 40(10), pages 1999-2013.
    6. Oostendorp, Remco H. & Trung, Tran Quoc & Tung, Nguyen Thanh, 2009. "The Changing Role of Non-Farm Household Enterprises in Vietnam," World Development, Elsevier, vol. 37(3), pages 632-644, March.
    7. World Bank, 2003. "Vietnam Development Report 2004 : Poverty," World Bank Other Operational Studies 14651, The World Bank.
    8. Vu, Van Huong, 2012. "Private manufacturing SMEs survival and growth in Vietnam: The role of export participation," MPRA Paper 42489, University Library of Munich, Germany.
    9. Benedikter, Simon & Waibel, Gabi & Birtel, Serge & Bui, Cuong The & Tran, Be Thanh, 2013. "Local Entrepreneurship in Vietnam’s Rural Transformation. A Case Study from the Mekong Delta," MPRA Paper 49866, University Library of Munich, Germany.
    10. Tomomi Tanaka & Colin F Camerer & Quang Nguyen, 2006. "Poverty, politics, and preferences: Field Experiments and survey data from Vietnam," Levine's Bibliography 122247000000001099, UCLA Department of Economics.
    11. World Bank, 2007. "Lao PDR - Private Sector and Investment Climate Assessment : Reducing Investment Climate Constraints to Higher Growth," World Bank Other Operational Studies 7707, The World Bank.
    12. World Bank & Asian Development Bank, 2007. "Reducing Investment Climate Constraints to Higher Growth : Lao People's Democratic Republic Private Sector and Investment Climate Assessment," World Bank Other Operational Studies 7591, The World Bank.

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