Discrimination, Social Capital, and Financial Constraints: The Case of Viet Nam

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Discrimination, Social Capital, and Financial Constraints : The Case of Viet Nam. / Pham, T.; Talavera, O.

In: World Development, Vol. 102, 06.11.2017, p. 228-242.

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@article{6e784b0a899346f3936b80097da866e2,
title = "Discrimination, Social Capital, and Financial Constraints: The Case of Viet Nam",
abstract = "This paper examines the relationship among gender, social capital, and access to finance of micro, small, and medium enterprises in the manufacturing sector in Viet Nam. Our dataset is from the 2011, 2013, and 2015 results of the Micro, Small, and Medium Enterprise Survey in Viet Nam. Using the Heckman technique to control for sample selection bias, the estimates do not provide evidence for discrimination against female-owned enterprises in the formal lending market. Specifically, female entrepreneurs have a higher probability of getting a loan and they pay lower interest rates in comparison with male entrepreneurs. No discrimination in formal credit markets may arise from the preference for informal loans over formal loans as entrepreneurs tend to borrow informal loans before applying for formal ones. Further analysis shows that social capital could facilitate loan applications: firms that have a closer relationship with government officials and other business people can get loans of longer duration.",
keywords = "discrimination, entrepreneurship, financial constraints, gender",
author = "T. Pham and O. Talavera",
year = "2017",
month = nov,
day = "6",
doi = "10.1016/j.worlddev.2017.10.005",
language = "English",
volume = "102",
pages = "228--242",
journal = "World Development",
issn = "0305-750X",
publisher = "Elsevier Sequoia",

}

RIS

TY - JOUR

T1 - Discrimination, Social Capital, and Financial Constraints

T2 - The Case of Viet Nam

AU - Pham, T.

AU - Talavera, O.

PY - 2017/11/6

Y1 - 2017/11/6

N2 - This paper examines the relationship among gender, social capital, and access to finance of micro, small, and medium enterprises in the manufacturing sector in Viet Nam. Our dataset is from the 2011, 2013, and 2015 results of the Micro, Small, and Medium Enterprise Survey in Viet Nam. Using the Heckman technique to control for sample selection bias, the estimates do not provide evidence for discrimination against female-owned enterprises in the formal lending market. Specifically, female entrepreneurs have a higher probability of getting a loan and they pay lower interest rates in comparison with male entrepreneurs. No discrimination in formal credit markets may arise from the preference for informal loans over formal loans as entrepreneurs tend to borrow informal loans before applying for formal ones. Further analysis shows that social capital could facilitate loan applications: firms that have a closer relationship with government officials and other business people can get loans of longer duration.

AB - This paper examines the relationship among gender, social capital, and access to finance of micro, small, and medium enterprises in the manufacturing sector in Viet Nam. Our dataset is from the 2011, 2013, and 2015 results of the Micro, Small, and Medium Enterprise Survey in Viet Nam. Using the Heckman technique to control for sample selection bias, the estimates do not provide evidence for discrimination against female-owned enterprises in the formal lending market. Specifically, female entrepreneurs have a higher probability of getting a loan and they pay lower interest rates in comparison with male entrepreneurs. No discrimination in formal credit markets may arise from the preference for informal loans over formal loans as entrepreneurs tend to borrow informal loans before applying for formal ones. Further analysis shows that social capital could facilitate loan applications: firms that have a closer relationship with government officials and other business people can get loans of longer duration.

KW - discrimination

KW - entrepreneurship

KW - financial constraints

KW - gender

UR - http://www.scopus.com/inward/record.url?scp=85033574804&partnerID=8YFLogxK

U2 - 10.1016/j.worlddev.2017.10.005

DO - 10.1016/j.worlddev.2017.10.005

M3 - Article

AN - SCOPUS:85033574804

VL - 102

SP - 228

EP - 242

JO - World Development

JF - World Development

SN - 0305-750X

ER -