LAUSR

Abstract This paper examines the role of different modes of external finance in making a high-growth firm (HGF) using unique micro, small, medium (MSM) firm-level data collected every two years in a developing country, Vietnam. Our empirical results indicate that firms that are able to access formal finance are more likely to become an HGF when compared to firms that do not use external finance or use only informal finance. However, firms that can utilize both formal finance and informal finance (i.e., co-funding mode of external finance) have the highest chance of becoming an HGF. These firms also perform much better than their counterparts.