Firm Agglomeration and Local Poverty Reduction: Evidence from an Economy in Transition

19 Pages Posted: 1 Jun 2016

See all articles by Giang T. Long

Giang T. Long

National Economics University

Cuong Viet Nguyen

(NEU) National Economics University of Vietnam

Tuyen Quang Tran

Vietnam National University (VNU) - VNU University of Economics and Business

Date Written: May 2016

Abstract

We examine the linkages between firm agglomeration and the welfare of households in Vietnam. We measured firm agglomeration by per capita firm output at the district level and household welfare by per capita income, expenditure, and poverty. We find that firm agglomeration helps households move from the informal sector to the formal sector. As a result, there is a positive effect of firm agglomeration on per capita income, per capita expenditure, and poverty reduction, albeit of a small and time‐decreasing magnitude. The effect of firm agglomeration on per capita expenditure tends to be higher for households with men, younger, and more educated heads than households with women, older, and less educated heads. Households in rural areas and those that do not have crop land are more likely to benefit from firm agglomeration than those living in urban areas and having crop land.

Keywords: firm agglomeration, firm performance, poverty, household survey, panel data, Vietnam

Suggested Citation

Giang, Long Thanh and Nguyen, Cuong Viet and Tran, Tuyen Quang, Firm Agglomeration and Local Poverty Reduction: Evidence from an Economy in Transition (May 2016). Asian‐Pacific Economic Literature, Vol. 30, Issue 1, pp. 80-98, 2016. Available at SSRN: https://ssrn.com/abstract=2787399 or http://dx.doi.org/10.1111/apel.12131

Long Thanh Giang (Contact Author)

National Economics University ( email )

207 Giai Phong Street, Hai Ba Trung District
Hanoi, Hanoi 10000
Vietnam

Cuong Viet Nguyen

(NEU) National Economics University of Vietnam ( email )

207 Giai phong Road
Hai Ba Trung District
Hanoi, Hanoi 10000
Vietnam

Tuyen Quang Tran

Vietnam National University (VNU) - VNU University of Economics and Business

E4 Building
144 Xuan Thuy - Cau Giay - Hanoi
Hanoi
Vietnam

Register to save articles to
your library

Register

Paper statistics

Downloads
0
Abstract Views
160
PlumX Metrics