SME credit constraints and access to informal credit markets in Vietnam
Bibliographic Data
| ID | 21515969 |
|---|---|
| Authors | Lan Archer (0000-0003-3121-0337, Griffith University), Parmendra Sharma (Griffith University), Jen-Je Su, Jen‐Je Su (0000-0002-8417-167X, Griffith University) |
| Year | 2020 |
| Volume | 47 |
| Issue | 6 |
| Pages | 787-807 |
| Publication date | 2020-06-20 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | International Journal of Social Economics (JOURNAL) |
| Journal identifiers | ISSN: 0306-8293 • E-ISSN: 1758-6712 |
| Publisher | Emerald (PUBLISHER) |
| DOI | 10.1108/ijse-11-2017-0543 |
| OpenAlex | W3037752211 |
| Language | EN |
| Citations received | 2 |
| References cited | 53 |
Purpose A review of literature has documented that accessing formal credit and other banking services has always been a crucial challenge for small and medium-sized enterprises (SMEs). The alternative, therefore, tends to be informal channels. However, the credit constraint vis-à-vis informal channel link does not appear to be well documented in the literature. This study aims to investigate whether credit constraints significantly affect the probability of accessing informal credit, as well as the credit values of Vietnamese SMEs. Design/methodology/approach This study uses a trinary approach and correlated random-effects Probit and Tobit techniques to avoid the incidental coefficients problem. Findings The results suggest that relative to unconstrained and partially constrained firms, fully constrained firms tend to be more active in the informal credit markets, shown by their higher probability of informal credit access and larger credit values. Originality/value To the best of authors’ knowledge, this is the first study on Vietnam that takes a different approach to credit constraints and examines their impact on informal credit access. Policy implications arise and are discussed. Peer review The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-11-2017-0543
Actuarial science · Business · Credit enhancement · Credit history · Credit reference · Credit risk · Econometrics · Economic growth · Economics · Informal sector · Microeconomics · Monetary economics · Originality · Probit · Probit model · Tobit model · Vietnamese · Computer Science · Microfinance and Financial Inclusion · Taxation and Compliance Studies · Working Capital and Financial Performance · Finance
Small and medium-size enterprises
Expanding Credit Access
Chapter 7 Growth Theory through the Lens of Development Economics
Who is Credit Constrained in the U. S. Economy?
Fixed Effects and Bias Due to the Incidental Parameters Problem in the Tobit Model
Multivariate regression models for panel data
Errors in Variables
Interfirm Relationships and Informal Credit in Vietnam
Alternative Tests of Independence between Stochastic Regressors and Disturbances
Financing patterns around the world
Do Firms Want to Borrow More? Testing Credit Constraints Using a Directed Lending Program
Access to finance for innovative SMEs since the financial crisis
Analysis of Covariance with Qualitative Data
On the Pooling of Time Series and Cross Section Data
Specification Tests in Econometrics
Formal and Informal Rural Credit in Four Provinces of Vietnam
Local Financial Development and Household Welfare in Vietnam
Financial constraints in China
Credit Constraints and Determinants of the Cost of Capital in Vietnamese Manufacturing’
Financial constraints and firm dynamics
The Benefits of Formalization
Rural Development Finance in Vietnam
Informal finance
Informal sector
Efficient Estimation of Time-Invariant and Rarely Changing Variables in Finite Sample Panel Analyses with Unit Fixed Effects
The Determinants of Credit Access and Its Impacts on Micro and Small Enterprises
Formal and Informal Credit Markets in Egypt
| Citations per year | 0.5 |
|---|---|
| Citation span | 2022 - 2026 (5) |
| Highly cited | No |