Universität zu Köln

Haschka, Rouven E., Herwartz, Helmut, Struthmann, Philipp and Walle, Yabibal M. ORCID: 0000-0001-9594-1361 (2022). The joint effects of financial development and the business environment on firm growth: Evidence from Vietnam. J. Comp. Econ., 50 (2). S. 486 - 507. SAN DIEGO: ACADEMIC PRESS INC ELSEVIER SCIENCE. ISSN 1095-7227

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Abstract

This work examines the complementary effects of local financial development and the business environment on the growth of Vietnamese firms. For the period from 2009 to 2013, we combine firm-level data covering more than 40,000 firms from the Vietnam Enterprise Survey with province-level data from the Vietnam Provincial Competitiveness Indicators. Our estimation strategy builds upon a novel copula-based estimator that accounts for potential endogeneity biases without requiring external instruments. Our results show that financial development and a favourable business environment generally promote firm growth, but some components of the business environment, such as low entry costs, access to land and business service support, foster firm growth more strongly than financial development. Most importantly, financial development and the business environment interact positively in their effects on firm growth. The impact of local financial development on firm growth is higher in provinces with a competitive business environment. Conversely, improvements in provincial competitiveness have a greater impact on firm growth in provinces with a more developed financial sector. The results clearly show that policies to promote local financial development need to be coordinated with measures to improve the broader business environment.

Item Type:	Journal Article
Creators:	Creators Email ORCID ORCID Put Code Haschka, Rouven E. UNSPECIFIED UNSPECIFIED UNSPECIFIED Herwartz, Helmut UNSPECIFIED UNSPECIFIED UNSPECIFIED Struthmann, Philipp UNSPECIFIED UNSPECIFIED UNSPECIFIED Walle, Yabibal M. UNSPECIFIED orcid.org/0000-0001-9594-1361 UNSPECIFIED
URN:	urn:nbn:de:hbz:38-679197
DOI:	10.1016/j.jce.2021.11.002
Journal or Publication Title:	J. Comp. Econ.
Volume:	50
Number:	2
Page Range:	S. 486 - 507
Date:	2022
Publisher:	ACADEMIC PRESS INC ELSEVIER SCIENCE
Place of Publication:	SAN DIEGO
ISSN:	1095-7227
Language:	English
Faculty:	Unspecified
Divisions:	Unspecified
Subjects:	no entry
Uncontrolled Keywords:	Keywords Language SMALL ENTERPRISES; LEVEL CORRUPTION; PROPERTY-RIGHTS; PANEL-DATA; CONSTRAINTS; SIZE; PERFORMANCE; GOVERNANCE; IDENTIFY; ERROR Multiple languages Economics Multiple languages
URI:	http://kups.ub.uni-koeln.de/id/eprint/67919