IDEAS home Printed from https://ideas.repec.org/a/ags/aolpei/233967.html
   My bibliography  Save this article

Income Impacts of Credit on Accessed Households in Rural Vietnam: Do Various Credit Sources Perform Differently?

Author

Listed:
  • Luan, D. X.
  • Bauer, S.
  • Kuhl, R.

Abstract

This study uses the Propensity Score Matching to examine the income impact of different credit sources on accessed households in the Northern Mountains of Vietnam. Results show that overall rural credit serves an important role in improving household income with respect to total income, per capita income and non- farm income. However, different credit affects recipients heterogeneously. Whereas a significant increase in household income can be achieved through accessing commercial and informal loans, there is no significant increase of all income components associated recipients of preferential credit. These results imply that a successful credit scheme needs to consider variations in transaction costs, disbursement scheme, loan characteristics and typical socio-economic conditions of credit recipients.

Suggested Citation

  • Luan, D. X. & Bauer, S. & Kuhl, R., 2016. "Income Impacts of Credit on Accessed Households in Rural Vietnam: Do Various Credit Sources Perform Differently?," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 8(1), pages 1-11, March.
    • Handle: RePEc:ags:aolpei:233967
    DOI: 10.22004/ag.econ.233967
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/233967/files/agris_on-line_2016_1_luan_bauer_kuhl.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.233967?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ngo, Thi Minh-Phuong & Wahhaj, Zaki, 2012. "Microfinance and gender empowerment," Journal of Development Economics, Elsevier, vol. 99(1), pages 1-12.
    2. Guirkinger, Catherine, 2008. "Understanding the Coexistence of Formal and Informal Credit Markets in Piura, Peru," World Development, Elsevier, vol. 36(8), pages 1436-1452, August.
    3. Khoi, Phan Dinh & Gan, Christopher & Nartea, Gilbert V. & Cohen, David A., 2013. "Formal and informal rural credit in the Mekong River Delta of Vietnam: Interaction and accessibility," Journal of Asian Economics, Elsevier, vol. 26(C), pages 1-13.
    4. Carolyn Heinrich & Alessandro Maffioli & Gonzalo Vázquez, 2010. "A Primer for Applying Propensity-Score Matching," SPD Working Papers 1005, Inter-American Development Bank, Office of Strategic Planning and Development Effectiveness (SPD).
    5. Bernhard Brümmer & Jens‐Peter Loy, 2000. "The Technical Efficiency Impact of Farm Credit Programmes: A Case Study of Northern Germany," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(3), pages 405-418, September.
    6. Dufhues, Thomas & Buchenrieder, Gertrud, 2005. "Outreach of credit institutes and households' access constraints to formal credit in Northern Vietnam," Research in Development Economics and Policy (Discussion Paper Series) 8535, Universitaet Hohenheim, Department of Agricultural Economics and Social Sciences in the Tropics and Subtropics.
    7. Fengxia Dong & Jing Lu & Allen M. Featherstone, 2012. "Effects of credit constraints on household productivity in rural China," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 72(3), pages 402-415, November.
    8. Nghiem, Hong Son & Coelli, Tim J. & Rao, Prasada, 2007. "The welfare effects of microfinance in Vietnam: empirical results from a quasi-experiment survey," 2007 Conference (51st), February 13-16, 2007, Queenstown, New Zealand 10437, Australian Agricultural and Resource Economics Society.
    9. Mikkel Barslund & Finn Tarp, 2008. "Formal and Informal Rural Credit in Four Provinces of Vietnam," Journal of Development Studies, Taylor & Francis Journals, vol. 44(4), pages 485-503, April.
    10. van Rooyen, C. & Stewart, R. & de Wet, T., 2012. "The Impact of Microfinance in Sub-Saharan Africa: A Systematic Review of the Evidence," World Development, Elsevier, vol. 40(11), pages 2249-2262.
    11. Mahjabeen, Rubana, 2008. "Microfinancing in Bangladesh: Impact on households, consumption and welfare," Journal of Policy Modeling, Elsevier, vol. 30(6), pages 1083-1092.
    12. Hazarika, Gautam & Alwang, Jeffrey, 2003. "Access to credit, plot size and cost inefficiency among smallholder tobacco cultivators in Malawi," Agricultural Economics, Blackwell, vol. 29(1), pages 99-109, July.
    13. Nguyen Viet, Cuong & Van den Berg, Marrit, 2011. "The impact of Informal Credit on Poverty and Inequality: The Case of Vietnam," MPRA Paper 54758, University Library of Munich, Germany.
    14. Diagne, Aliou & Zeller, Manfred, 2001. "Access to credit and its impact on welfare in Malawi:," Research reports 116, International Food Policy Research Institute (IFPRI).
    15. Coleman, Brett E., 2006. "Microfinance in Northeast Thailand: Who benefits and how much?," World Development, Elsevier, vol. 34(9), pages 1612-1638, September.
    16. Buadi, Donus K. & Anaman, Kwabena A. & Kwarteng, Joseph A., 2013. "Farmers’ perceptions of the quality of extension services provided by non-governmental organisations in two municipalities in the Central Region of Ghana," Agricultural Systems, Elsevier, vol. 120(C), pages 20-26.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Liqiong Lin & Weizhuo Wang & Christopher Gan & David A. Cohen & Quang T.T Nguyen, 2019. "Rural Credit Constraint and Informal Rural Credit Accessibility in China," Sustainability, MDPI, vol. 11(7), pages 1-20, April.
    2. Carol V. Irvin & Alex Bohl & Kate Stewart & Susan R. Williams & Allison Steiner & Noelle Denny-Brown & Andrea Wysocki & Rebecca Coughlin & Jason Smoot & Victoria Peebles, "undated". "Money Follows the Person 2015 Annual Evaluation Report," Mathematica Policy Research Reports c5574895a3e04c0db633e9db8, Mathematica Policy Research.
    3. T. O. Ojo & L. J. S. Baiyegunhi, 2020. "Determinants of credit constraints and its impact on the adoption of climate change adaptation strategies among rice farmers in South-West Nigeria," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-15, December.
    4. Dana Petersen & Rachel Miller, 2016. "Health Care Coverage and Access for Children in Low-Income Families: Stakeholder Perspectives from California," Mathematica Policy Research Reports 27db7eade5a44a6ab1dfba5bd, Mathematica Policy Research.
    5. Thanh-Tung Nguyen & Trung Thanh Nguyen & Ulrike Grote, 2020. "Credit and Ethnic Consumption Inequality in the Central Highlands of Vietnam," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 148(1), pages 143-172, February.
    6. Agustin L. Arcenas, 2018. "Determining the Inflationary Effects of El Niño and La Niña in the Philippines," UP School of Economics Discussion Papers 201802, University of the Philippines School of Economics.
    7. Ta Nhat Linh & Dang Anh Tuan & Phan Thu Trang & Hoang Trung Lai & Do Quynh Anh & Nguyen Viet Cuong & Philippe Lebailly, 2020. "Determinants of Farming Households’ Credit Accessibility in Rural Areas of Vietnam: A Case Study in Haiphong City, Vietnam," Sustainability, MDPI, vol. 12(11), pages 1-16, May.
    8. Anh, Nguyen Tuan & Gan, Christopher & Anh, Dao Le Trang, 2022. "Multi-market credit rationing: The determinants of and impacts on farm performance in Vietnam," Economic Analysis and Policy, Elsevier, vol. 75(C), pages 159-173.
    9. Bendetta Frassi & Christian Hagist & Fabio Pammolli, 2017. "Who is this, who enters there? - Migration in Italy and its effect on fiscal sustainability and pensions," WHU Working Paper Series - Economics Group 17-01, WHU - Otto Beisheim School of Management.
    10. Ndlovu, P.N. & Thamaga-Chitja, J.M. & Ojo, T.O., 2021. "Factors influencing the level of vegetable value chain participation and implications on smallholder farmers in Swayimane KwaZulu-Natal," Land Use Policy, Elsevier, vol. 109(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Liqiong Lin & Weizhuo Wang & Christopher Gan & David A. Cohen & Quang T.T Nguyen, 2019. "Rural Credit Constraint and Informal Rural Credit Accessibility in China," Sustainability, MDPI, vol. 11(7), pages 1-20, April.
    2. Paramasivam Ramasamy & Umanath Malaiarasan, 2023. "Agricultural credit in India: determinants and effects," Indian Economic Review, Springer, vol. 58(1), pages 169-195, June.
    3. Ta Nhat Linh & Hoang Thanh Long & Le Van Chi & Le Thanh Tam & Philippe Lebailly, 2019. "Access to Rural Credit Markets in Developing Countries, the Case of Vietnam: A Literature Review," Sustainability, MDPI, vol. 11(5), pages 1-18, March.
    4. Ta Nhat Linh & Dang Anh Tuan & Phan Thu Trang & Hoang Trung Lai & Do Quynh Anh & Nguyen Viet Cuong & Philippe Lebailly, 2020. "Determinants of Farming Households’ Credit Accessibility in Rural Areas of Vietnam: A Case Study in Haiphong City, Vietnam," Sustainability, MDPI, vol. 12(11), pages 1-16, May.
    5. Do Xuan Luan & Nguyen Thanh Vu & Kieu Thi Thu Huong & Duong Hang & Siegfried Bauer, 2016. "Is Access to Agribank Credit an Effective Tool in Improving Household Income? Evidence from the Northern Mountainous Region of Vietnam," Asian Social Science, Canadian Center of Science and Education, vol. 12(8), pages 110-110, August.
    6. Tran, Minh Chau & Gan, Christopher & Hu, Baiding, 2014. "Credit Constraints and Impact on Farm Household Welfare: Evidence from Vietnam’s North Central Coast region," 2014 Conference, August 28-29, 2014, Nelson, New Zealand 187495, New Zealand Agricultural and Resource Economics Society.
    7. Thanh, Pham Tien & Saito, Katsuhiro & Duong, Pham Bao, 2019. "Impact of microcredit on rural household welfare and economic growth in Vietnam," Journal of Policy Modeling, Elsevier, vol. 41(1), pages 120-139.
    8. Migheli, Matteo, 2016. "Land Ownership, Access to Informal Credit and Its Cost in Rural Vietnam," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201619, University of Turin.
    9. Erhardt, Eva, 2017. "Microfinance beyond self-employment: Evidence for firms in Bulgaria," MPRA Paper 79294, University Library of Munich, Germany.
    10. Thanh-Tung Nguyen & Trung Thanh Nguyen & Ulrike Grote, 2020. "Credit and Ethnic Consumption Inequality in the Central Highlands of Vietnam," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 148(1), pages 143-172, February.
    11. Erhardt, Eva Christine, 2017. "Microfinance beyond self-employment: Evidence for firms in Bulgaria," Labour Economics, Elsevier, vol. 47(C), pages 75-95.
    12. Akotey, Joseph Oscar & Adjasi, Charles K.D., 2016. "Does Microcredit Increase Household Welfare in the Absence of Microinsurance?," World Development, Elsevier, vol. 77(C), pages 380-394.
    13. Wainaina, P. & Njagi, T. & Onyango, K., 2018. "Credit constraints, off-farm participation and productivity; case of Kenyan rural sector," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277050, International Association of Agricultural Economists.
    14. Louis Atamja & Sungjoon Yoo, 2021. "Credit Constraint and Rural Household Welfare in the Mezam Division of the North-West Region of Cameroon," Sustainability, MDPI, vol. 13(11), pages 1-19, May.
    15. Meishan Jiang & Krishna P. Paudel & Fan Zou, 2020. "Do Microcredit Loans Do What They Are Intended To Do? A Case Study of the Credit Village Microcredit Programme in China," Journal of International Development, John Wiley & Sons, Ltd., vol. 32(5), pages 763-792, July.
    16. Jianmei ZHAO & Jun ZHANG & Peter J. BARRY, 2014. "Do formal credit constraints affect the rural household consumption in China?," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 60(10), pages 458-468.
    17. Pham, Tho & Talavera, Oleksandr, 2018. "Discrimination, Social Capital, and Financial Constraints: The Case of Viet Nam," World Development, Elsevier, vol. 102(C), pages 228-242.
    18. Gutiérrez-Nieto, Begoña & Serrano-Cinca, Carlos, 2019. "20 years of research in microfinance: An information management approach," International Journal of Information Management, Elsevier, vol. 47(C), pages 183-197.
    19. Gori Maia, Alexandre & Eusebio, Gabriela S. & Silveira, Rodrigo L. F., 2016. "Impact of microcredit on small-farm agricultural production: evidence from Brazil," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235682, Agricultural and Applied Economics Association.
    20. Araya Teka & Sung-Kyu Lee, 2020. "Do Agricultural Package Programs Improve the Welfare of Rural People? Evidence from Smallholder Farmers in Ethiopia," Agriculture, MDPI, vol. 10(5), pages 1-20, May.

    More about this item

    Keywords

    Consumer/Household Economics;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aolpei:233967. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/fevszcz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.