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Rural Credit in Vietnam

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Author Info

  • Mikkel Barslund

    (Department of Economics, University of Copenhagen)

  • Finn Tarp

    (Department of Economics, University of Auckland)

Abstract

This paper uses a survey of 932 rural households to uncover how the rural credit market operates in four provinces of Vietnam. Households obtain credit through formal and informal lenders, but formal loans are almost entirely for production and asset accumulation. Interest rates fell from 1997 to 2002, reflecting increased market integration; but the determinants of formal and informal credit demand are distinct. Credit rationing depends on education and credit history, but we find no evidence of a bias against women. Regional differences are striking, and a ‘one size fits all’ approach to credit policy is clearly inappropriate.

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Bibliographic Info

Paper provided by University of Copenhagen. Department of Economics in its series Discussion Papers with number 06-03.

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Length: 22 pages
Date of creation: Feb 2006
Date of revision:
Handle: RePEc:kud:kuiedp:0603

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Related research

Keywords: rural credit; household survey; Vietnam;

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