How large is Vietnam's informal economy?

Hoa, Nguyen Thai

doi:10.1111/ecaf.12328

Cited by 19 publications

(8 citation statements)

References 23 publications

(38 reference statements)

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“…The informal economy is visible in the form of survivalist business activities that are conducted from pavements, pedestrian malls, transport stations, road traffic, streets and from abandoned buildings (Smit and Musango, 2015). The informal economy has a bad reputation for conducting economic activities outside regulatory oversight, reducing government revenue collection, and for increasing corruption (Sakuhuni, 2014;Ouédraogo, 2017;Neef, 2002;Hoa, 2019). But the informal economy also has benefits that need to be acknowledged.…”

Section: The Informal Economy Loses From Financial Inclusionmentioning

confidence: 99%

Who Loses in Financial Inclusion?

Ozili¹

2023

Advances in Finance, Accounting, and Economics

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Financial inclusion involves the provision of basic formal financial services to members of society. Policy efforts and collaboration with the private sector have helped to increase the level of financial inclusion in many countries. Such efforts give rise to net winners and net losers from financial inclusion efforts. This chapter identifies the net losers from financial inclusion efforts. The lesson from the net losers identified in this study is that being ‘banked' is only a necessary condition to enjoy the benefits of financial inclusion. Being ‘banked' is not a sufficient condition to enjoy the benefits of financial inclusion. A banked adult can be a net loser from financial inclusion despite being banked. This has wider implications for understanding the challenges to sustained financial inclusion.

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Section: The Informal Economy Loses From Financial Inclusionmentioning

confidence: 99%

Who Loses in Financial Inclusion?

Ozili¹

2023

Advances in Finance, Accounting, and Economics

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“…Since 2007, the informal sector has grown sharply in Vietnam while its size has decreased in other comparable nations. It accounted for between 18 and 27 percent of Vietnam's national GDP during 2008 and 2015 (Hoa, 2019). However, while there has been rich literature on the relationship between informal competition and innovation in China (Pérez et al, 2019), Eastern Europe and Central Asia (McCann & Bahl, 2017), Africa and Latin America (Mendi & Costamagna, 2017) and Sub‐Saharan Africa (Avenyo et al, 2021), little is known on this topic in the context of Vietnam.…”

Section: Hypotheses Developmentmentioning

confidence: 99%

Determinants of intangible capital investment in Vietnam: A firm‐level analysis

2023

World Economy

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Intangible capital is an important growth driver in the modern knowledge‐based and innovation‐driven economy. While there seems to be sufficient support for the role of intangible capital from developed economies, evidence from fast‐growing developing countries is much more limited. This paper explores the heterogeneous pattern and potential determinants of firm‐level intangible capital investment in Vietnam. We found that firm size, human capital, and information and communication technology increase the likelihood to invest in intangible capital. Additionally, an inverted‐U shaped relation is identified between market competition and intangible capital investment: Moderate levels of market competition induce firms in Vietnam to invest more in innovative activities, but the effect of stronger competition diminishes.

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“…The model includes a set of observable indicator variables and causal variables. By estimating the equations for these two sets of variables, one can approach the estimation of variables that are unobservable and difficult to measure directly (Chaudhuri et al, 2006;Hoa, 2019;Tonuchi et al, 2020).…”

Section: Model For Estimating the Informal Economymentioning

confidence: 99%

The driving effect of informal economies on urbanization in China

et al. 2022

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This paper examines the rise of informal economies in China, a hidden driving force overlooked in studies on China's urbanization. Estimating the size of informal economies using the multiple indicators multiple causes model, the paper employs mathematical models to examine the driving effect of informal economies on urbanization and to reveal the paths by which such effect works. The results were as follows. (1) In 2018, the size of the informal economy in China accounted for 23.5% of GDP with an output value of 21.16 trillion yuan. (2) The informal economy had a driving effect on China's urbanization, and every 1-percentagepoint increase in its share of the GDP led to an increase of 0.291 percentage points in the urbanization rate. (3) The informal economy's effect on urbanization showed regional differences, decreasing in size from the eastern to the central to the western regions. (4) The informal economy drives urbanization through four paths -by promoting foreign direct investment (FDI), fixed asset investment (FAI), social consumption (SC), and secondary sector employment (SSE). Their effect sizes are ranked in descending order as follows: FDI > FAI > SC > SSE. This paper contributes to theories on urbanization dynamics and process in China by highlighting the role of the informal economy as a hidden economic power lurking in the city.

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How large is Vietnam's informal economy?

Cited by 19 publications

References 23 publications

Who Loses in Financial Inclusion?

Who Loses in Financial Inclusion?

Determinants of intangible capital investment in Vietnam: A firm‐level analysis

The driving effect of informal economies on urbanization in China

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