Financial health and firm productivity: Firm-level evidence from Viet Nam

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Does 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 - 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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• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ADBI Working Paper ; No. 434

Classification and Topics

• Classification: Wirtschaft ; Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance ; Industrial Policy ; Economywide Country Studies: Asia including Middle East
• Subject: financial health ; total factor productivity ; financial development ; Wirtschaftlichkeit ; Produktivität ; Unternehmenserfolg ; Außenhandel ; Panelforschung ; Vietnam

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Thangavelu, Shandre M. ; Chongvilaivan, Aekapol
• Event: Veröffentlichung
• (who): Asian Development Bank Institute (ADBI)
• (where): Tokyo
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/101263