Household business index in Vietnam: a small area estimation method

Nguyen, Cuong and Do, Trang and Phung, Thu and Phung, Tung (2012): Household business index in Vietnam: a small area estimation method.

Abstract

This study aims to estimate of Business or Formality Index (FI) for business households at provincial and district levels in the rural areas of Vietnam. In order to construct the FI, we implemented a survey of 900 business households in three provinces in Vietnam. Then we estimate the FI for these 900 sampled households. Next, we use a small area estimation method to combine this business household survey and the 2009 Vietnam Population and Housing Census to estimate the FI for all provinces and districts in rural Vietnam. The FI at the national level is estimated to be at 62.7 (according to the score range 1 – 100, the higher the score is, the better the index reflects business environment). The FI varies more greatly at provincial level, from 57.3 to 69.5. The FI for households tends to be higher at more developed provinces and lower at less developed provinces.

• Item Type: MPRA Paper
• Language: English
• Keywords: Household business, business environment, Formality Index, household business survey, small area estimation, Vietnam.
• Subjects: M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M1 - Business Administration > M10 - General; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M2 - Business Economics > M21 - Business Economics

References

Bedi, T., Coudouel, A. and Simler, K., (2007), More Than a Pretty Picture: Using Poverty Maps to Design Better Policies and Interventions, The World Bank.

Bigman, D. and Fofack, H. (2000), Geographic Targeting for Poverty Alleviation: Methodology and Applications. Washington DC: World Bank Regional and Sectoral Studies.

CAP [Trung tâm Tư vấn Chính sách Nông nghiệp] (2007). “Tác động của môi trường đầu tư nông thôn tới sự Figure thành and phát triển của các doanh nghiệp vừa and nhỏ”.

Easterly, W. and A. Kraay. 2000. “Small States, Small Problems? Income, Growth, and Volatility in Small States.” World Development Vol. 28, n11, pp. 2013-27.

Elbers, C., Fujii, T., Lanjouw, P., Ozler, B., Yin, W. (2007), “Poverty Alleviation through Geographic Targeting: How Much Does Disaggregation Help?” Journal of Development Economics 83, pp.198-213.

Elbers, C., Lanjouw, J. and Lanjouw, P. (2002), “Micro-Level Estimation of Welfare”, Policy Research Working Paper No. WPS 2911. The World Bank.

Elbers, C., Lanjouw, J. and Lanjouw, P. (2003), “Micro-level estimation of poverty and inequality”, Econometrica 71 (1), pp. 355-364.

Freeman, N., Nguyễn Văn Làn, and Nguyễn Hạnh Nam (2005), “Đăng ký and thành lập doanh nghiệp ở Việt Nam: Con số and thực trang”. Báo cáo Nghiên cứu Chương trình Phát triển Kinh tế Tư nhân MPDF, Ngân hàng Thế giới.

Kotler, Philip (1985), Essential Marketing, Prentice Hall Press.

Lanjouw, J. O. and P. Lanjouw. 1995. “Rural Nonfarm Employment: A Survey.” Policy Research Working Paper, 1463. The World Bank: May.

Lanjouw, P. 1998. “Ecuador’s Rural Nonfarm Sector as a Route Out of Poverty.” Policy Research Working Paper, 1094. The World Bank: March.

Nguyen, V. C. (2009), “Updating Poverty Map without Panel Data: Evidence from Vietnam”, Asian Economic Journal, Vol. 23(4), 2009, pp. 397-418.

Nguyen, V. C. (2010), “Tác động của Tăng lương tối thiểu lên việc làm ở Việt Nam”, Báo cáo cho Bộ Lao động and Thương binh Xã hội.

Nguyen, V. C. (2011), “A Method to Update Poverty Map”, Journal of Development Studies, accepted.

Parker, Simon (2009), The Economics of Entrepreneurship, Cambridge University Press.

Pham T., Bui T., Dao T, (2010), “Is Nonfarm Diversification a Way Out of Poverty for Rural Households? Evidence from Vietnam in 1993-2006”, PEP-PMMA working papers, Cahiers de recherche PMMA, no. 2010-17.

Phước Hà (2006), “Cở sở sản xuất bị bỏ rơi về chính sách”, Vietnam Net, 21/07/2006, http://www.fetp.edu.vn/inthenews/vietnamnet_210706_1.htm;

Porter, Michael E. (1998), Competitive Strategy: Techniques for Analyzing Industries and Competitors, Free Press.

Ruben R and M. van den Berg. 2001. “Nonfarm employment and poverty alleviation of rural farm households in Honduras.” World Development Vol. 29, No. 3, p 549-560, 2001.

Van de Walle, D. 1994. “Rural Poverty in an Emerging Market Economy: Is Diversification into Nonfarm Activities in Rural Viet Nam the Solution?” Policy Research Department. The World Bank, Unpublished Manuscript.

VCCI (2010), “Chỉ số năng lực cạnh tranh cấp tỉnh của Việt Nam năm 2010”. Báo cáo Nghiên cứu chính sách - VNCI, Số 15, Phòng Thương mại and công nghiệp Việt Nam.

Winters Alan, McCulloch, and Andrew McKay. 2004. “Trade Liberalization and Poverty: The Evidence So Far.” Journal of Economic Literature Vol. XLII (March 2004).