Obstacles to Economic Freedom Affecting Micro, Small, and Medium Enterprises (MSMEs) in Southeast Asian Countries

Added Title

DLSU-AKI Working Paper Series 2021-11-077

Authors

Blaise Kent Calpito, De La Salle University, Manila
Jocef Fernand Ocampo, De La Salle University, Manila
Chyna Tomas, De La Salle University, Manila
Mary June Valenzuela, De La Salle University, Manila
Renz Adrian T. Calub, De La Salle University, Manila
Mitzie Irene Conchada, De La Salle University, Manila
Arlene B. Inocencio, De La Salle University, Manila
Alellie B. Sobrevinas, De La Salle University, Manila
Marites M. Tiongco, De La Salle University, Manila

College

School of Economics

Department/Unit

Economics

Document Type

Working Paper

Publication Date

11-2021

Abstract

Obstacles to economic freedom such as trade obstacles, finance obstacles, taxes, and corruption affect the ability of micro, small, and medium enterprises (MSMEs) to maximize firm performance. Existing empirical studies investigating the effect of specific MSME-level obstacles to economic freedom are scarce in Southeast Asian countries. Therefore, this paper focuses on analyzing and comparing the effects of these obstacles to economic freedom on the performance of MSMEs in Indonesia, Vietnam, the Philippines, and Malaysia using firm-level data from the 2015 World Bank Enterprise Survey. The methodology utilizes an ordinary least squares regression, and endogenous treatment effects regression, in determining which obstacles of economic freedom significantly affect MSME performance. Overall, it was found that trade obstacle is positively correlated to firm performance in all the countries except in Vietnam, whereas finance obstacle is negatively correlated to firm performance in all the countries except in Malaysia, whereas results were negative for taxes in the Philippines and corruption in Vietnam.

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Recommended Citation

Calpito, B., Ocampo, J., Tomas, C., Valenzuela, M., Calub, R. T., Conchada, M., Inocencio, A. B., Sobrevinas, A. B., & Tiongco, M. M. (2021). Obstacles to Economic Freedom Affecting Micro, Small, and Medium Enterprises (MSMEs) in Southeast Asian Countries. Retrieved from https://animorepository.dlsu.edu.ph/res_aki/16

Disciplines

Business Administration, Management, and Operations | Entrepreneurial and Small Business Operations

Keywords

MSME; Firm Performance; Obstacles to Economic Freedom; Southeast Asia

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