INFORMAL SECTOR AND URBANIZATION EXTERNALITIES IN VIETNAM

Thi Bich Tran ()
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Thi Bich Tran: The National Economics University, Vietnam

Eurasian Journal of Economics and Finance, 2018, vol. 6, issue 1, 56-63

Abstract: This paper investigates the impacts of urbanization on the productivity of informal household businesses in urban places of Vietnam. Urbanization externalities are measured by the diversity of industry, which are disaggregated from formal and informal sources, and city size. Results from the paper show that informal household businesses in urban places benefit from clustering with formal enterprises but not from informal firms in other industries. Furthermore, the concentration in large and dense urban areas does not bring benefits to informal household businesses. The results call for more attention on the urban planning towards the informal sector in urban places of Vietnam.

Keywords: Urbanization; Informality; Productivity (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:ejn:ejefjr:v:6:y:2018:i:1:p:56-63

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