Investigating SME’s credit constraints: a trinary approach

Lan Archer, Parmendra Sharma and Jen-Je Su

Journal of the Asia Pacific Economy, 2024, vol. 29, issue 3, 1533-1563

Abstract: This study aims to provide an understanding of factors that might affect three-level credit constraints of small and medium-sized enterprises (SMEs) in Vietnam, using data from the Vietnam’s Manufacturing SME Survey database. We apply a random-effects generalised ordered probit model to accommodate two types of heterogeneity: unobserved individual heterogeneity and the heterogeneous effect of independent variables across three constraint categories. Results show that several firm and owner characteristics are in play. Several of these are indeed heterogeneous, such as varying across constraint categories, a new finding in the literature. A key contribution of this study is the use of a trinary rather than the usual binary approach to measure and more fully understand determinants of credit constraints in the case of small and medium-sized enterprises in Vietnam.

Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/13547860.2022.2109378 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:rjapxx:v:29:y:2024:i:3:p:1533-1563

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rjap20

DOI: 10.1080/13547860.2022.2109378

Access Statistics for this article

Journal of the Asia Pacific Economy is currently edited by Leong Liew

More articles in Journal of the Asia Pacific Economy from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().