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STARTING BUSINESSES THROUGH RECIPROCAL INFORMAL SUBCONTRACTING: EVIDENCE FROM THE INFORMAL GARMENT INDUSTRY IN HO CHI MINH CITY
Author(s) -
Goto Kenta
Publication year - 2013
Publication title -
journal of international development
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.533
H-Index - 66
eISSN - 1099-1328
pISSN - 0954-1748
DOI - 10.1002/jid.1780
Subject(s) - ho chi minh , business , reciprocal , kinship , clothing , informal sector , cash , industrial organization , economic growth , commerce , economics , finance , sociology , political science , socioeconomics , linguistics , philosophy , low income , anthropology , law
This paper addresses the question of how cash constrained and inexperienced people in developing countries can start their businesses by looking at the informal garment industry of Ho Chi Minh City, Vietnam. This industry caters primarily for the domestic local markets and produce garments through local subcontracting systems. These subcontracting systems are embedded in social networks, which are based on kinship and territorial relationships, and are reciprocal in nature. This paper argues that in the absence of formal institutions supporting business start‐ups, such reciprocal informal subcontracting could play major roles. Copyright © 2011 John Wiley & Sons, Ltd.