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The welfare effects of microfinance in Vietnam: empirical results from a quasi-experiment survey

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  • Nghiem, Hong Son
  • Coelli, Tim J.
  • Rao, Prasada

Abstract

In this paper we analyse the effects of microfinance programs upon household welfare in Vietnam. Our analytical framework builds upon the rural household models of Singh et al. (1986) and Rosenzweig (1990). Data on 470 households across 25 villages was collected using a quasiexperiment survey approach to overcome self-selection bias. In our econometric analysis the welfare effects of microfinance are proxied using measures of household income and consumption. The empirical results indicate that participation in microfinance has a positive effect upon household welfare, with the size of the effect increasing at a decreasing rate as a household spends more time in the microfinance program.

Suggested Citation

  • 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.
    • Handle: RePEc:ags:aare07:10437
    DOI: 10.22004/ag.econ.10437
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    Cited by:

    1. 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.

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    Financial Economics;

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