Political connections and firm's formalization: Evidence from Viet Nam

Anh Dang and Hai Anh La

No wp-2020-147, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: The literature shows that political connections have different effects on firms' activities. However, the question of how political connections affect firms' formalization has not been explored. Using data from three waves of the Vietnam Small and Medium Enterprise Survey for the period from 2007 to 2011, this paper aims to examine the relationship between political connections and firms' formalization in Viet Nam. We find that firms with political connections increase their share of formal workers.

Keywords: Political connections; Formalization; Viet Nam (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-bec, nep-iue, nep-sbm, nep-sea and nep-tra
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