Details
| Original language | English |
|---|---|
| Pages (from-to) | 1564-1598 |
| Number of pages | 35 |
| Journal | Journal of the Asia Pacific Economy |
| Volume | 29 |
| Issue number | 3 |
| Early online date | 10 Aug 2022 |
| Publication status | Published - 2024 |
Abstract
This paper examines whether heterogeneities in financial development among Vietnamese provinces matter for firm growth in Vietnam. Using a nationally representative firm survey that covers more than 41,000 firms for the period 2009 − 2013, we estimate the impact of provincial financial development on the growth rates of firms by accounting for sectoral differences in growth opportunities. We find that province-level financial development promotes the growth rates of sales, investment and sales per worker of small firms, and reduces the growth rate of the wage-to-sales ratio. Our results imply that firms grow faster in provinces with a higher level of financial development. Moreover, the effect of financial development on growth rates is larger when firms operate in sectors with better growth opportunities.
Keywords
- economic growth, Financial development, firm growth, growth opportunities, local development
ASJC Scopus subject areas
- Social Sciences(all)
- Geography, Planning and Development
- Social Sciences(all)
- Development
- Social Sciences(all)
- Political Science and International Relations
Sustainable Development Goals
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In: Journal of the Asia Pacific Economy, Vol. 29, No. 3, 2024, p. 1564-1598.
Research output: Contribution to journal › Article › Research › peer review
}
TY - JOUR
T1 - Local financial development and the growth of small firms in Vietnam
AU - Tran, Viet T.
AU - Walle, Yabibal M.
AU - Herwartz, Helmut
AU - Nguyen, Trung Thanh
N1 - Publisher Copyright: © 2022 Informa UK Limited, trading as Taylor & Francis Group.
PY - 2024
Y1 - 2024
N2 - This paper examines whether heterogeneities in financial development among Vietnamese provinces matter for firm growth in Vietnam. Using a nationally representative firm survey that covers more than 41,000 firms for the period 2009 − 2013, we estimate the impact of provincial financial development on the growth rates of firms by accounting for sectoral differences in growth opportunities. We find that province-level financial development promotes the growth rates of sales, investment and sales per worker of small firms, and reduces the growth rate of the wage-to-sales ratio. Our results imply that firms grow faster in provinces with a higher level of financial development. Moreover, the effect of financial development on growth rates is larger when firms operate in sectors with better growth opportunities.
AB - This paper examines whether heterogeneities in financial development among Vietnamese provinces matter for firm growth in Vietnam. Using a nationally representative firm survey that covers more than 41,000 firms for the period 2009 − 2013, we estimate the impact of provincial financial development on the growth rates of firms by accounting for sectoral differences in growth opportunities. We find that province-level financial development promotes the growth rates of sales, investment and sales per worker of small firms, and reduces the growth rate of the wage-to-sales ratio. Our results imply that firms grow faster in provinces with a higher level of financial development. Moreover, the effect of financial development on growth rates is larger when firms operate in sectors with better growth opportunities.
KW - economic growth
KW - Financial development
KW - firm growth
KW - growth opportunities
KW - local development
UR - http://www.scopus.com/inward/record.url?scp=85135856452&partnerID=8YFLogxK
U2 - 10.1080/13547860.2022.2109379
DO - 10.1080/13547860.2022.2109379
M3 - Article
AN - SCOPUS:85135856452
VL - 29
SP - 1564
EP - 1598
JO - Journal of the Asia Pacific Economy
JF - Journal of the Asia Pacific Economy
SN - 1354-7860
IS - 3
ER -