Household Enterprises in Vietnam : Survival, Growth, and Living Sandards
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 gr...
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| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2013
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2002/02/1711110/household-enterprises-vietnam-survival-growth-living-standards http://hdl.handle.net/10986/15633 |
| Summary: | 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. |
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