Just a Piece of Paper? Domestic Standards Certification and Small Firm Growth in Viet Nam. Issue 8 (3rd August 2021)

• Record Type: Journal Article
• Authors: Calza, Elisa; Goedhuys, Micheline
• Is Part Of: Journal of development studies. Volume 57:Issue 8(2021)
• Page Start: 1351
• Page End: 1372
• Publication Date: 2021-08-03
• Subjects: Economic development -- Periodicals; Economic history -- 1945- -- Periodicals; Developing countries -- Economic conditions -- Periodicals; Développement économique -- Périodiques; Histoire économique -- 1945- -- Périodiques; Pays en voie de développement -- Conditions économiques -- Périodiques; 338.91
• DOI: 10.1080/00220388.2021.1873289
• Languages: English
• ISSNs: 0022-0388

Abstract

Abstract: Using two waves (2013, 2015) of the Micro, Small, and Medium sized Enterprises (MSMEs) survey of Vietnamese manufacturing firms, this paper first explores what drives firms' decision to have a domestic standards certificate, taking into account a rich number of factors related to the cost and expected benefits of certification as well as institutional factors. It further explores the presence of a positive and significant effect of domestic certificates on firm growth, testing whether these serve as signalling devices for desirable attributes under information asymmetry. Evidence is indeed found for a signalling effect of domestic standards certification, being stronger for female-run businesses. Results hold even when controlling for international certifications.