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The impact of microfinance on poverty reduction in Vietnam: A dynamic panel‐data analysis

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  • Hoai A. Duong
  • Hong S. Nghiem

Abstract

The current study uses the Generalised Method of Moments to examine the dynamic relationship between access to microfinance and poverty reduction. The panel‐data set is constructed from the Vietnam Household Living Standard Surveys during 2002–2008. The results show that access to microfinance in the previous period significantly improves per adult‐equivalent income and consumption of the households in the current period. However, previous participation in microfinance programs is not sufficient to help households escape from poverty. In addition, both private and government bank loans significantly help improve household per adult‐equivalent income, consumption, and poverty rates. The empirical results imply that a larger loan size, diversified loans for different consumption purposes, and improvement in infrastructure and facilities, especially in rural areas, are believed to help reduce poverty. 本研究使用广义矩估计来分析小额信贷获取与减贫之间的动态关系。使用2002‐2008年期间越南家庭生活水平调查构建面板数据集。结果表明，前期的小额信贷获取显著提高了当前时期相当于每位成人的家庭收入和消费。不过，前期参与小额信贷项目一事并不足以帮助家庭摆脱贫困。此外，私人银行和政府银行贷款都显著有助于提高相当于每位成人的家庭收入和消费，并减少贫困。实证结果暗示，更大的贷款规模、针对不同消费目的的多样化贷款、以及基础设施的改善（特别是在农村地区），被认为有助于更好地减贫。 El presente estudio utiliza el Método Generalizado de Momentos para examinar la relación dinámica entre el acceso a las microfinanzas y la reducción de la pobreza. El conjunto de datos de panel se construye a partir de las Encuestas de nivel de vida de los hogares de Vietnam durante 2002‐2008. Los resultados muestran que el acceso a las microfinanzas en el período anterior mejora significativamente el ingreso por adulto equivalente y el consumo de los hogares en el período actual. Sin embargo, la participación previa en programas de microfinanzas no es suficiente para ayudar a los hogares a salir de la pobreza. Además, los préstamos bancarios privados y gubernamentales ayudan significativamente a mejorar el ingreso por adulto equivalente de los hogares, el consumo y reducir la pobreza. Los resultados empíricos implican que se cree que un tamaño de préstamo más grande, préstamos diversificados para diferentes propósitos de consumo y mejoras en la infraestructura y las instalaciones, especialmente en áreas rurales, ayudan a reducir mejor la pobreza.

Suggested Citation

  • Hoai A. Duong & Hong S. Nghiem, 2022. "The impact of microfinance on poverty reduction in Vietnam: A dynamic panel‐data analysis," Poverty & Public Policy, John Wiley & Sons, vol. 14(4), pages 405-422, December.
    • Handle: RePEc:wly:povpop:v:14:y:2022:i:4:p:405-422
    DOI: 10.1002/pop4.354
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