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Impacts of Loan Support Policy on Farm Income in Vietnam

Author

Listed:
  • Dao, Thien Ly

    (Good Neighbors International, Vietnam; Fulbright University Vietnam, Vietnam)

  • Le, Thai-Ha

    (VinFuture Prize, VinFuture Foundation, Vietnam & IPAG Business School, France)

  • Tran-Nam , Binh

    (University of New South Wales, Australia)

Abstract

Assessing the impact of agricultural policies is challenging due to resource limitations and problem identification. This study evaluates the impact of a loan support program on the income of agricultural farms in Vietnam’s crop cultivation and aquaculture sectors. Using the regression discontinuity method and data from Vietnam’s Rural, Agriculture, and Fishery report, encompassing 15,749 farms across 23 provinces in the Central Highlands, Southeast, and Mekong River Delta, we analyze the program’s effects based on farmland holding size. Results indicate a positive impact on annual crops value but a negative impact on income from rice cultivation. Income from perennial crops, such as coffee, showed little increase, while income from pepper cultivation decreased. However, income from aquaculture demonstrated an increase. Overall, the program positively influenced total income with an annual increase of approximately 14.5%. It is evident that the loan support policy is suitable for farm development but may not always yield positive outcomes for specific activities.

Suggested Citation

  • Dao, Thien Ly & Le, Thai-Ha & Tran-Nam , Binh, 2023. "Impacts of Loan Support Policy on Farm Income in Vietnam," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 48(2), pages 53-81, June.
    • Handle: RePEc:ris:jecdev:0058
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    References listed on IDEAS

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    More about this item

    Keywords

    Loan; Farm; Fuzzy regression discontinuity; Income; Vietnam;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance

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