Impact of financial support policies on the growth of small and medium-sized enterprises in Hanoi
DOI:
https://doi.org/10.59394/JSM.126Keywords:
Small and medium-sized enterprises, financial support, concessional credit, Small and Medium Enterprise Development Fund (SMEDF), Decree No. 39/2019/ND-CPAbstract
This study evaluates the impact of concessional loans from the Small and Medium Enterprise Development Fund (SMEDF) under Government Decree No. 39/2019/ND-CP dated May 10, 2019, on the revenue growth of small and medium-sized enterprises (SMEs) in Hanoi. Using a balanced panel dataset of 1,200 enterprises for the period 2017 - 2022, including 231 firms that accessed loans from the SMEDF, the study applies a combined Propensity Score Matching and Difference-in-Differences (PSM-DiD) approach. Specifically, propensity scores are estimated using a logit regression model, followed by nearest-neighbor matching with a caliper of 0.03 to construct a comparable control group (227 borrowing firms and 227 matched control firms). Subsequently, the DiD model is estimated with control variables including asset size, labor, and firm characteristics. The results indicate that the concessional credit policy has a positive and statistically significant impact on firms’ revenue growth (DiD = 0.133; p < 0.001), corresponding to an increase of approximately 13.3% relative to the control group. Robustness checks confirm the consistency of the findings. Based on these results, the study recommends maintaining and expanding concessional credit sources for SMEs, strengthening supervision of fund utilization, and combining financial assistance with non-financial support measures to enhance the effectiveness of policy implementation.
References
Abadie, A. (2005). Semiparametric difference-in-differences estimators. Review of Economic Studies, 72(1), 1-19.
Angrist, J. D., & Pischke, J. S. (2009). Mostly harmless econometrics: An empiricist’s companion. Princeton University Press.
Banerjee, A., & Duflo, E. (2014). Do firms want to borrow more? Testing credit constraints using a directed lending program. Review of Economic Studies, 81(2), 572-607.
Beck, T., Demirgüç-Kunt, A., & Maksimovic, V. (2005). Financial and legal constraints to firm growth: Does firm size matter? Journal of Finance, 60(1), 137-177.
Beck, T., Demirgüç-Kunt, A., & Maksimovic, V. (2008). Financing patterns around the world: Are small firms different? Journal of Financial Economics, 89(3), 467-487.
Bertrand, M., Duflo, E., & Mullainathan, S. (2004). How much should we trust differences-in-differences estimates? Quarterly Journal of Economics, 119(1), 249-275.
Caliendo, M., & Kopeinig, S. (2008). Some practical guidance for the implementation of propensity score matching. Journal of Economic Surveys, 22(1), 31-72.
Card, D., & Krueger, A. B. (1994). Minimum wages and employment: A case study of the fast-food industry in New Jersey and Pennsylvania. American Economic Review, 84(4), 772-793.
Dehejia, R. H., & Wahba, S. (1999). Causal effects in nonexperimental studies: Reevaluating the evaluation of training programs. Journal of the American Statistical Association, 94(448), 1053-1062.
General Statistics Office of Vietnam. (2018). Report on the situation of small and medium-sized enterprises in Vietnam in 2018. Hanoi: Statistical Publishing House.
Government. (2019). Decree No. 39/2019/ND-CP dated May 10, 2019, on the organization and operation of the Small and Medium Enterprise Development Fund.
Heckman, J. J., Ichimura, H., & Todd, P. (1997). Matching as an econometric evaluation estimator. Review of Economic Studies, 64(4), 605-654.
Imbens, G. W., & Wooldridge, J. M. (2009). Recent developments in econometric methods for program evaluation. Journal of Economic Literature, 47(1), 5-86.
Kaplan, S. N., & Zingales, L. (1997). Do investment-cash flow sensitivities provide useful measures of financing constraints? Quarterly Journal of Economics, 112(1), 169-215.
Rosenbaum, P. R., & Rubin, D. B. (1983). The central role of the propensity score in observational studies for causal effects. Biometrika, 70(1), 41-55.
Stiglitz, J. E., & Weiss, A. (1981). Credit rationing in markets with imperfect information. American Economic Review, 71(3), 393-410.
