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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.

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File URL: http://purl.umn.edu/10437
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Bibliographic Info

Paper provided by Australian Agricultural and Resource Economics Society in its series 2007 Conference (51st), February 13-16, 2007, Queenstown, New Zealand with number 10437.

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Date of creation: 2007
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Handle: RePEc:ags:aare07:10437

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Keywords: Microfinance; rural households; Vietnam; quasi-experiment survey; effectiveness; welfare; Financial Economics;

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