The Benefits of Formalization: Evidence from Vietnamese Manufacturing SMEs

Research output: Contribution to journal › Journal article › Research › peer-review

Standard

The Benefits of Formalization : Evidence from Vietnamese Manufacturing SMEs. / Rand, John; Torm, Nina Elisabeth.

In: World Development, Vol. 40, No. 5, 05.2012, p. 983–998.

Research output: Contribution to journal › Journal article › Research › peer-review

Harvard

Rand, J & Torm, NE 2012, 'The Benefits of Formalization: Evidence from Vietnamese Manufacturing SMEs', World Development, vol. 40, no. 5, pp. 983–998. https://doi.org/10.1016/j.worlddev.2011.09.004

APA

Rand, J., & Torm, N. E. (2012). The Benefits of Formalization: Evidence from Vietnamese Manufacturing SMEs. World Development, 40(5), 983–998. https://doi.org/10.1016/j.worlddev.2011.09.004

Vancouver

Rand J, Torm NE. The Benefits of Formalization: Evidence from Vietnamese Manufacturing SMEs. World Development. 2012 May;40(5):983–998. https://doi.org/10.1016/j.worlddev.2011.09.004

Author

Rand, John ; Torm, Nina Elisabeth. / The Benefits of Formalization : Evidence from Vietnamese Manufacturing SMEs. In: World Development. 2012 ; Vol. 40, No. 5. pp. 983–998.

Bibtex

@article{1e2e7e79717f449fa51c092787a06b95,
title = "The Benefits of Formalization: Evidence from Vietnamese Manufacturing SMEs",
abstract = "Based on unique panel data consisting of both formal and informal firms, this paper uses a matched double differenceapproach to examine the relationship between legal status and firm level outcomes in micro, small and medium manufacturing enterprises(SMEs) in Vietnam. Controlling for determining factors and observable time-variant factors that may simultaneously influencethe decision to formalize and subsequent firm performance, we find evidence that becoming officially registered leads to an increasein profits and investments, and a decrease in the use of casual labor (improved contract conditions for workers). Thus, we conclude thatformalizing is beneficial both to firms and the workers in these firms.",
keywords = "Faculty of Social Sciences, formality, Vietnam, employment, formality, employment, Vietnam",
author = "John Rand and Torm, {Nina Elisabeth}",
year = "2012",
month = may,
doi = "10.1016/j.worlddev.2011.09.004",
language = "English",
volume = "40",
pages = "983–998",
journal = "World Development",
issn = "1873-5991",
publisher = "Pergamon Press",
number = "5",

}

RIS

TY - JOUR

T1 - The Benefits of Formalization

T2 - Evidence from Vietnamese Manufacturing SMEs

AU - Rand, John

AU - Torm, Nina Elisabeth

PY - 2012/5

Y1 - 2012/5

N2 - Based on unique panel data consisting of both formal and informal firms, this paper uses a matched double differenceapproach to examine the relationship between legal status and firm level outcomes in micro, small and medium manufacturing enterprises(SMEs) in Vietnam. Controlling for determining factors and observable time-variant factors that may simultaneously influencethe decision to formalize and subsequent firm performance, we find evidence that becoming officially registered leads to an increasein profits and investments, and a decrease in the use of casual labor (improved contract conditions for workers). Thus, we conclude thatformalizing is beneficial both to firms and the workers in these firms.

AB - Based on unique panel data consisting of both formal and informal firms, this paper uses a matched double differenceapproach to examine the relationship between legal status and firm level outcomes in micro, small and medium manufacturing enterprises(SMEs) in Vietnam. Controlling for determining factors and observable time-variant factors that may simultaneously influencethe decision to formalize and subsequent firm performance, we find evidence that becoming officially registered leads to an increasein profits and investments, and a decrease in the use of casual labor (improved contract conditions for workers). Thus, we conclude thatformalizing is beneficial both to firms and the workers in these firms.

KW - Faculty of Social Sciences

KW - formality

KW - Vietnam

KW - employment

KW - formality

KW - employment

KW - Vietnam

U2 - 10.1016/j.worlddev.2011.09.004

DO - 10.1016/j.worlddev.2011.09.004

M3 - Journal article

VL - 40

SP - 983

EP - 998

JO - World Development

JF - World Development

SN - 1873-5991

IS - 5

ER -

ID: 40368899