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Just a Piece of Paper? Domestic Standards Certification and Small Firm Growth in Viet Nam

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  • Elisa Calza
  • Micheline Goedhuys

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.

Suggested Citation

  • Elisa Calza & Micheline Goedhuys, 2021. "Just a Piece of Paper? Domestic Standards Certification and Small Firm Growth in Viet Nam," Journal of Development Studies, Taylor & Francis Journals, vol. 57(8), pages 1351-1372, August.
    • Handle: RePEc:taf:jdevst:v:57:y:2021:i:8:p:1351-1372
    DOI: 10.1080/00220388.2021.1873289
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    Cited by:

    1. Nguyen, Ngoc Thang & Vu, Van Huong, 2023. "How does adopting occupational health and safety management practices affect outcomes for employees? The case of Vietnamese SMEs," International Review of Economics & Finance, Elsevier, vol. 83(C), pages 629-640.

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