WP-07: Impact of Stimulus Package on Firm-Level Performance an econometric assessment form 2009 PCI Data for Vietnam

Our analyses on the PCI 2009 survey show that the positive impacts of the loan subsidy program upon firm performance is not very significant. The size of impact on labor employed before and after the subsidy program introduced is found to be relatively small. Firms in the mining sector or of medium size seem to have a propensity to employ more labor rather than have more investment in machinery or equipment. This might imply that the subsidy package has helped these firms in short-term performance but not in the longer term.

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