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Impacts of Household Credit on Education and Healthcare Spending by the Poor in Peri-urban Areas in Vietnam

Author

Listed:
  • Tinh Doan

    () (Ministry of Economic Development)

  • John Gibson

    () (University of Waikato)

  • Mark Holmes

    () (University of Waikato)

Abstract

There is debate about whether microfinance has positive impacts on education and health for borrowing households in developing countries. To provide evidence for this debate we use a new survey designed to meet the conditions for propensity score matching (PSM) and examine the impact of household credit on education and healthcare spending by the poor in peri-urban areas of Ho Chi Minh City, Vietnam. In addition to matching statistically identical non-borrowers with borrowers, our estimates also control for household pre-treatment income and assets, which may be associated with unobservable factors affecting both credit participation and the outcomes of interest. The PSM estimates of binary treatment effect show significant and positive impacts of borrowing on education and healthcare spending. However, multiple ordered treatment effect estimates reveal that only formal credit has significant and positive impacts on education and healthcare spending, while informal credit has insignificant impacts on the spending.

Suggested Citation

  • Tinh Doan & John Gibson & Mark Holmes, 2011. "Impacts of Household Credit on Education and Healthcare Spending by the Poor in Peri-urban Areas in Vietnam," Working Papers in Economics 11/06, University of Waikato.
  • Handle: RePEc:wai:econwp:11/06
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    File URL: ftp://wms-webprod1.mngt.waikato.ac.nz/RePEc/wai/econwp/1106.pdf
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    References listed on IDEAS

    as
    1. Rajeev H. Dehejia & Sadek Wahba, 2002. "Propensity Score-Matching Methods For Nonexperimental Causal Studies," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 151-161, February.
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    Cited by:

    1. Jing You & Samuel Annim, 2014. "The Impact of Microcredit on Child Education: Quasi-experimental Evidence from Rural China," Journal of Development Studies, Taylor & Francis Journals, vol. 50(7), pages 926-948, July.
    2. You, Jing, 2013. "The role of microcredit in older children’s nutrition: Quasi-experimental evidence from rural China," Food Policy, Elsevier, vol. 43(C), pages 167-179.
    3. Nguyen Viet, Cuong, 2014. "Impact Evaluation of Development Programmes and Policies: Experiences from Viet Nam," MPRA Paper 60919, University Library of Munich, Germany.
    4. Dinh, Cuong & Nguyen, Cuong & Pham, Phuong, 2014. "Does Microcredit Have an Impact on Children? Evidences from Vietnam," MPRA Paper 71092, University Library of Munich, Germany.

    More about this item

    Keywords

    matching; education and healthcare spending; household credit; the poor; peri-urban; Vietnam;

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • H81 - Public Economics - - Miscellaneous Issues - - - Governmental Loans; Loan Guarantees; Credits; Grants; Bailouts

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