{"id":14064,"date":"2024-08-12T11:01:00","date_gmt":"2024-08-12T04:01:00","guid":{"rendered":"https:\/\/isd.neu.edu.vn\/?p=14064"},"modified":"2025-06-09T14:41:19","modified_gmt":"2025-06-09T07:41:19","slug":"trade-credit-labor-employment-and-demand-for-skills-an-empirical-investigation-of-vietnamese-small-and-medium-enterprises","status":"publish","type":"post","link":"https:\/\/isd.neu.edu.vn\/en\/trade-credit-labor-employment-and-demand-for-skills-an-empirical-investigation-of-vietnamese-small-and-medium-enterprises\/","title":{"rendered":"Trade credit, labor employment, and demand for skills: An empirical investigation of Vietnamese small and medium enterprises"},"content":{"rendered":"<h2 class=\"wp-block-heading\">Trade credit, labor employment, and demand for skills: An empirical investigation of Vietnamese small and medium enterprises<\/h2>\n\n\n\n<p><strong>Thang Ngoc Bach, Thanh Le<\/strong><\/p>\n\n\n\n<p>National Economics University, Vietnam<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>Correspondence<\/strong><\/p>\n\n\n\n<p>Thanh Le, School of Business, Faculty of Business and Law, University of Wollongong, Northfields Avenue, Wollongong, NSW 2522, Australia.<\/p>\n\n\n\n<p>Email:&nbsp;<a href=\"mailto:thanhl@uow.edu.au\">thanhl@uow.edu.au<\/a><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>Funding information<\/strong><\/p>\n\n\n\n<p>Vietnam National Foundation for Science and Technology Development, Grant\/Award Number: 502.01-2021.01<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>Received: 2 November 2022<\/p>\n\n\n\n<p>Revised: 1 July 2024<\/p>\n\n\n\n<p>Accepted: 23 July 2024<\/p>\n\n\n\n<p>DOI: 10.1111\/rode.13147<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">ABSTRACT<\/h3>\n\n\n\n<p>This paper examines the effect of firms\u2019 trade credit use on their labor demand and the composition of this labor demand in terms of skilled and unskilled workers. Our analysis is conducted on a rich data set of private manufacturing small and medium enterprises in Vietnam over the period of 2009\u20132013. We find strong and robust evidence that these firms recruit more workers when they receive trade credit offered from their suppliers. In addition, larger trade credit is associated with firms\u2019 higher propensity to hire skilled labor. We also find that the effect of trade credit on firms\u2019 labor market decision works through the investment channels, especially through those investment projects leading to the enhancement of firms\u2019 innovative capability. These findings highlight the role of trade credit regulations for job creation and economic development.<\/p>\n\n\n\n<p><strong>KEYWORDS<\/strong><\/p>\n\n\n\n<p>credit constraints, labor market decisions, skilled labor demand, SMEs, trade credit<\/p>\n\n\n\n<p><strong>JEL CLASSIFICATION<\/strong><\/p>\n\n\n\n<p>G21, J21, J23, J24, M51networks Financial accessibility Cost of funding SMEs<\/p>\n\n\n\n<p>Detail:&nbsp;<strong><a href=\"https:\/\/isd.neu.edu.vn\/wp-content\/uploads\/2024\/08\/Trade-credit-labor-employment-and-demand-for-skills.pdf\">Review Development Economics \u2013 2024 \u2013 Bach \u2013 Trade credit labor employment and demand for skills An empirical<\/a><\/strong><\/p>","protected":false},"excerpt":{"rendered":"<p>Trade credit, labor employment, and demand for skills: An empirical investigation of Vietnamese small and medium enterprises Thang Ngoc Bach, Thanh Le National Economics University, Vietnam Correspondence Thanh Le, School of Business, Faculty of Business and Law, University of Wollongong, Northfields Avenue, Wollongong, NSW 2522, Australia. Email:&nbsp;thanhl@uow.edu.au Funding information Vietnam National Foundation for Science and&#8230;<\/p>","protected":false},"author":1,"featured_media":14096,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[51,56],"tags":[],"class_list":["post-14064","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cong-bo-quoc-te","category-dao-tao-e-phd"],"_links":{"self":[{"href":"https:\/\/isd.neu.edu.vn\/en\/wp-json\/wp\/v2\/posts\/14064","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/isd.neu.edu.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/isd.neu.edu.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/isd.neu.edu.vn\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/isd.neu.edu.vn\/en\/wp-json\/wp\/v2\/comments?post=14064"}],"version-history":[{"count":7,"href":"https:\/\/isd.neu.edu.vn\/en\/wp-json\/wp\/v2\/posts\/14064\/revisions"}],"predecessor-version":[{"id":14144,"href":"https:\/\/isd.neu.edu.vn\/en\/wp-json\/wp\/v2\/posts\/14064\/revisions\/14144"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/isd.neu.edu.vn\/en\/wp-json\/wp\/v2\/media\/14096"}],"wp:attachment":[{"href":"https:\/\/isd.neu.edu.vn\/en\/wp-json\/wp\/v2\/media?parent=14064"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/isd.neu.edu.vn\/en\/wp-json\/wp\/v2\/categories?post=14064"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/isd.neu.edu.vn\/en\/wp-json\/wp\/v2\/tags?post=14064"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}