Financial development and economic growth in Vietnam

Anwar, Sajid; Nguyen, Lan Phi

doi:10.1007/s12197-009-9106-2

Cited by 67 publications

(58 citation statements)

References 31 publications

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“…Although the banking sector has shown remarkable progress since the start of the economic reform process in 1986the ratio of bank deposits to GDP grew from 28 percent during the period 1990-1997 to 92 percent in 2008 (see Anwar and Nguyen, 2011;Leung, 2009)most bank finance still goes to the large state-owned enterprises (SOEs) and the bank penetration ratio within the Vietnamese population is only about 10 percent (IFC, 2008). Although the banking sector has shown remarkable progress since the start of the economic reform process in 1986the ratio of bank deposits to GDP grew from 28 percent during the period 1990-1997 to 92 percent in 2008 (see Anwar and Nguyen, 2011;Leung, 2009)most bank finance still goes to the large state-owned enterprises (SOEs) and the bank penetration ratio within the Vietnamese population is only about 10 percent (IFC, 2008).…”

Section: The Vietnamese Contextmentioning

confidence: 99%

“…Third, trade credit is an important source of firm finance because formal financial markets in Vietnam are relatively underdeveloped and many firms (especially SMEs) lack access to external (bank) finance. Although the banking sector has shown remarkable progress since the start of the economic reform process in 1986the ratio of bank deposits to GDP grew from 28 percent during the period 1990-1997 to 92 percent in 2008 (see Anwar and Nguyen, 2011;Leung, 2009)most bank finance still goes to the large state-owned enterprises (SOEs) and the bank penetration ratio within the Vietnamese population is only about 10 percent (IFC, 2008).…”

Section: The Vietnamese Contextmentioning

confidence: 99%

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Trade credit use and competition in the value chain

et al. 2016

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Trade credit is a major source of finance in value chains in developed and emerging economies. Despite its ubiquitous use, this is one of the first empirical studies that analyzes why the use of trade credit varies along the value chain. We argue that competition faced by firms at different stages in the value chain and enforcement mechanisms that stimulate repayment jointly determine the use of trade credit. We distinguish two dimensions of competition, that is, rivalry and customer bargaining power. Competition may stimulate firms to provide trade credit to keep customers from switching to other suppliers. Yet, high contract enforcement costs relative to the value of the transactions, reduce the willingness to offer trade credit. We find empirical evidence showing that competition does not (strongly) influence the use of trade credit in the retail market, whereas it does in the markets for wholesalers and millers. We interpret these results as suggestive evidence that the retail, wholesale and milling market segments differ in terms of the enforcement costs involved in the provision of trade credit. Rivalry at the retail market segment makes switching easy for customers, even in case of default. As enforcement of repayment in this market segment is difficult and costly, trade credit appears to be a risky and less attractive marketing instrument for retailers. In contrast, in the wholesale and milling market segment, trade credit is widespread as stakeholders know each other, making informal mechanisms effective in supporting the enforcement of trade credit repayment.JEL classifications: L14, O53.

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Section: The Vietnamese Contextmentioning

confidence: 99%

Section: The Vietnamese Contextmentioning

confidence: 99%

Trade credit use and competition in the value chain

et al. 2016

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“…Building on this theoretical foundation, a number of empirical studies examined the relationship between financial sector development and economic growth (see Chang and Caudill, 2005 [2]; Seetanah, 2008 [3]; Anwar and Nguyen, 2011 [4]; Uddin et al, 2013 [5]; Nwani and Bassey Orie, 2016 [6] among others). The results of most of these studies show that financial intermediary development is a significant driver of economic growth.…”

Section: Introductionmentioning

confidence: 99%

The Impact of Financial Development on Economic Growth in Nigeria: An ARDL Analysis

Iheanacho

2016

Economies

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This study empirically examines the relationship between financial intermediary development and economic growth in Nigeria over the period 1981-2011 using the auto-regressive distributed lag (ARDL) approach to co-integration analysis. The results show that the relationship between financial development and economic growth in Nigeria is not significantly different from what has been observed generally in oil-dependent economies. The relationship between financial intermediary development and economic growth in Nigeria is found to be insignificantly negative in the long-run and significantly negative in the short-run. The results highlight the dominant role of the oil sector in economic activities in Nigeria.

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“…2 Both panels exhibit the positive, albeit modest, correlation between financial health and TFP. Consistent with Anwar and Nguyen (2012), firms with a higher degree of liquidity and access to external credit tend to have higher TFP. This suggests that financial health is a potential driving force for firm productivity in Viet Nam.…”

Section: Financial Development and Productivity Growth In Viet Nammentioning

confidence: 59%

Financial Health and Firm Productivity: Firm-Level Evidence from Viet Nam

Thangavelu

Chongvilaivan

2013

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Asian Development Bank InstituteThe Working Paper series is a continuation of the formerly named Discussion Paper series; the numbering of the papers continued without interruption or change. ADBI's working papers reflect initial ideas on a topic and are posted online for discussion. ADBI encourages readers to post their comments on the main page for each working paper (given in the citation below). Some working papers may develop into other forms of publication. The views expressed in this paper are the views of the author and do not necessarily reflect the views or policies of ADBI, the ADB, its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.Asian Development Bank Institute Kasumigaseki Building 8F 3-2-5 Kasumigaseki, Chiyoda-ku Tokyo 100-6008, JapanTel:+81-3-3593-5500 Fax:+81-3-3593-5571 URL:www.adbi.org E-mail: info@adbi.org AbstractDoes financial health shore up firm productivity? This paper empirically investigates this question and presents productivity as another driving factor in translating financial development into real economic progress. Our empirical framework employs Levinsohn and Petrin's (2003) semi-parametric estimation of total factor productivity (TFP) using firm-level panel data during [2002][2003][2004][2005][2006][2007][2008], and incorporates financial health variables into conventional determinants of firm productivity. Our findings suggest that liquidity and access to external credit boosts firm productivity, with the latter particularly imperative for exporting and/or importing firms. We also present supplementary results regarding economies of scale, high-tech capital accumulation, human capital investment and foreign ownership.

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Financial development and economic growth in Vietnam

Abstract: Financial Development, Economic Growth, Globalization, Vietnam, F20, O11, O16,

Cited by 67 publications

References 31 publications

Trade credit use and competition in the value chain

Trade credit use and competition in the value chain

The Impact of Financial Development on Economic Growth in Nigeria: An ARDL Analysis

Financial Health and Firm Productivity: Firm-Level Evidence from Viet Nam

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