Household Entrepreneurship and Social Networks: Panel Data Evidence from Vietnam

Huu Chi Nguyen and Christophe Nordman
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Huu Chi Nguyen: LEDA-DIAL - Développement, Institutions et Modialisation - LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique, LEDa - Laboratoire d'Economie de Dauphine - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres

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Abstract: Using a unique panel of household businesses for Vietnam, this paper sheds light on the links between households' and entrepreneurs' social networks and business performance. We address two related questions. One first question asks if we can find evidence of a differentiated effect of employment of members of the family versus hired workers on the business performance. A second question tackles the respective effects of various dimensions of social networks on the business technical efficiency. The assumption is that, beyond the channel of labour productivity, entrepreneurs that are confronted with an unfavourable social environment may produce less efficiently and realize a lower output than what could be possible with the same amount of resources. We find evidence of a productivity differential between family and hired labour and highlight results consistent with the presence of adverse social network effects faced by households running a business, in particular ethnic minorities. We stress the importance of professional networks for successful entrepreneurship.

Keywords: Informality; Kinship and ethnic ties; Sharing norms; Social network capital; Household business; Vietnam; Family labour; Travail familial; Capital du réseau social; Informalité; Microentreprises familiales; Panel; Normes de partage; Liens ethniques et de parenté (search for similar items in EconPapers)
Date: 2017-10-19
New Economics Papers: this item is included in nep-ent, nep-iue, nep-net, nep-sbm, nep-sea, nep-soc and nep-tra
Note: View the original document on HAL open archive server: https://hal.science/hal-01619799v1
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Citations: View citations in EconPapers (7)

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Related works:
Working Paper: Household Entrepreneurship and Social Networks: Panel Data Evidence from Vietnam (2018)
Working Paper: Household Entrepreneurship and Social Networks: Panel Data Evidence from Vietnam (2017)
Working Paper: Household entrepreneurship and social networks:panel data evidence from Vietnam (2014)
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