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Credit Availability and Internal Migration: Evidence from Thailand

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  • Cecilia Poggi

Abstract

This study investigates the relationship between borrowing and internal migration. Exploiting the micro-finance scheme Village Fund in Thailand, it investigates the short- and medium-term effects of borrowing since the policy’s introduction. Employing an instrumental variables approach, borrowing is instrumented using the inverse number of households per village at the beginning of the policy to capture potential credit availability. The findings suggest that internal migration in Thailand is not credit constrained and its interaction with credit is time-related. Borrowing reduces internal migration in the medium-term, but is found not to affect migration when the policy is first introduced.

Suggested Citation

  • Cecilia Poggi, 2019. "Credit Availability and Internal Migration: Evidence from Thailand," Journal of Development Studies, Taylor & Francis Journals, vol. 55(5), pages 861-875, May.
    • Handle: RePEc:taf:jdevst:v:55:y:2019:i:5:p:861-875
    DOI: 10.1080/00220388.2018.1498969
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    Cited by:

    1. Selod, Harris & Shilpi, Forhad, 2021. "Rural-urban migration in developing countries: Lessons from the literature," Regional Science and Urban Economics, Elsevier, vol. 91(C).
    2. Manh Hung Do & Trung Thanh Nguyen, 2023. "Does irrigation development mitigate weather extremes’ impacts and reduce poverty? Evidence from rural Southeast Asia," TVSEP Working Papers wp-034, Leibniz Universitaet Hannover, Institute of Development and Agricultural Economics, Project TVSEP.
    3. Marina-Selini Katsaiti & Maroula Khraiche, 2023. "Does access to credit alter migration intentions?," Empirical Economics, Springer, vol. 65(4), pages 1823-1854, October.
    4. Shabab, Chowdhury Rashaad, 2017. "Risk and inequality in rural Thailand," Economics PhD Theses 0817, Department of Economics, University of Sussex Business School.
    5. Aizhamal Rakhmetova & Roman Hoffmann & Mariola Pytlikova, 2022. "Access to Financial Resources and Environmental Migration of the Poor," CERGE-EI Working Papers wp724, The Center for Economic Research and Graduate Education - Economics Institute, Prague.

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