IDEAS home Printed from https://ideas.repec.org/p/ags/iaae18/277520.html
   My bibliography  Save this paper

Exploring Differences in Rural Household Debt between Thailand and Vietnam: Economic Environment versus Household Characteristics

Author

Listed:
  • Waibel, H.
  • Chichaibelu, B.B.

Abstract

This study aims to explore cross-country differences in credit market participation, level of household debt holding and over-indebtedness between rural households in Thailand and Vietnam. Using a unique rural household survey data from Vulnerability in Southeast Asia project, it first identifies socio-economic determinants of such market outcomes for rural households in Thailand and Vietnam. It decomposes differences into a part that arise due to configuration of household characteristics or a part that arise due to differences in economic environments using three decomposition methods. Significant differences are observed in credit market participation rates and level of debt holding and indebtedness between rural households in Thailand and Vietnam. Rural households in Thailand tend to participate more in the credit market and face higher risk of over-indebtedness. These observed differences arise mainly due to dissimilarity in the economic environment for households with similar characteristics. Economically disadvantaged rural households in Thailand are more likely to participate in the credit market and face higher level of indebtedness mainly because credit markets are make borrowing easy. The higher gap observed in the upper part of the debt distribution between Thailand and Vietnam can be explained by differences in credit market conditions between the two countries. Acknowledgement :

Suggested Citation

  • Waibel, H. & Chichaibelu, B.B., 2018. "Exploring Differences in Rural Household Debt between Thailand and Vietnam: Economic Environment versus Household Characteristics," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277520, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae18:277520
    DOI: 10.22004/ag.econ.277520
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/277520/files/1476.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.277520?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Myeong-Su Yun, 2005. "A Simple Solution to the Identification Problem in Detailed Wage Decompositions," Economic Inquiry, Western Economic Association International, vol. 43(4), pages 766-772, October.
    2. Olympia Bover & Jose Maria Casado & Sonia Costa & Philip Du Caju & Yvonne McCarthy & Eva Sierminska & Panagiota Tzamourani & Ernesto Villanueva & Tibor Zavadil, 2016. "The Distribution of Debt across Euro-Area Countries: The Role of Individual Characteristics, Institutions, and Credit Conditions," International Journal of Central Banking, International Journal of Central Banking, vol. 12(2), pages 71-128, June.
    3. Fairlie, Robert W, 1999. "The Absence of the African-American Owned Business: An Analysis of the Dynamics of Self-Employment," Journal of Labor Economics, University of Chicago Press, vol. 17(1), pages 80-108, January.
    4. Sarah Brown & Karl Taylor, 2008. "Household debt and financial assets: evidence from Germany, Great Britain and the USA," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 171(3), pages 615-643, June.
    5. Schicks, Jessica, 2014. "Over-Indebtedness in Microfinance – An Empirical Analysis of Related Factors on the Borrower Level," World Development, Elsevier, vol. 54(C), pages 301-324.
    6. Fortin, Nicole & Lemieux, Thomas & Firpo, Sergio, 2011. "Decomposition Methods in Economics," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 1, pages 1-102, Elsevier.
    7. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    8. Ben Jann, 2008. "The Blinder–Oaxaca decomposition for linear regression models," Stata Journal, StataCorp LP, vol. 8(4), pages 453-479, December.
    9. Asian Development Bank Institute, 2015. "Asian Development Outlook 2015 Financing Asia’s Future Growth," Working Papers id:6666, eSocialSciences.
    10. Don Nakornthab, 2010. "Household Indebtedness and Its Implications for Financial Stability," Research Studies, South East Asian Central Banks (SEACEN) Research and Training Centre, number rp80, April.
    11. Dimitris Christelis & Michael Ehrmann & Dimitris Georgarakos, 2015. "Exploring Differences in Household Debt Across Euro Area Countries and the United States," Staff Working Papers 15-16, Bank of Canada.
    12. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    13. Fairlie, Robert, 1999. "The Absence of the African-American Owned Business: An Analysis of the Dynamics of Self-Employment," Santa Cruz Department of Economics, Working Paper Series qt84v8v0nr, Department of Economics, UC Santa Cruz.
    14. Piotr Banbula & Arkadiusz Kotula & Joanna Gabriela Przeworska & Pawel Strzelecki, 2016. "Which households are really financially distressed: how micro data could inform the macroprudential policy," IFC Bulletins chapters, in: Bank for International Settlements (ed.), Combining micro and macro data for financial stability analysis, volume 41, Bank for International Settlements.
    15. Ummil Aminudin & Bruno Tissot, 2015. "Assessing household financial positions - an Asian perspective," IFC Bulletins chapters, in: Bank for International Settlements (ed.), Assessing household financial positions in Asia, volume 40, Bank for International Settlements.
    16. Tambunlertchai, Kanittha, 2015. "Financial Inclusion, Financial Regulation, and Financial Education in Thailand," ADBI Working Papers 537, Asian Development Bank Institute.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chichaibelu, Bezawit Beyene & Waibel, Hermann, 2017. "Explaining differences in rural household debt between Thailand and Vietnam: Economic environment versus household characteristics," TVSEP Working Papers wp-002, Leibniz Universitaet Hannover, Institute for Environmental Economics and World Trade, Project TVSEP.
    2. Juan Acosta-Ballesteros & María del Pilar Osorno-del Rosal & Olga María Rodríguez-Rodríguez, 2021. "Measuring the effect of gender segregation on the gender gap in time-related underemployment," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 55(1), pages 1-16, December.
    3. Marco Caliendo & Frank M. Fossen & Alexander Kritikos & Miriam Wetter, 2015. "The Gender Gap in Entrepreneurship: Not just a Matter of Personality," CESifo Economic Studies, CESifo Group, vol. 61(1), pages 202-238.
    4. Chen, Yunwei & Sylvia, Sean & Wu, Paiou & Yi, Hongmei, 2022. "Explaining the declining utilization of village clinics in rural China over time: A decomposition approach," Social Science & Medicine, Elsevier, vol. 301(C).
    5. Girma Gezimu Gebre & Hiroshi Isoda & Dil Bahadur Rahut & Yuichiro Amekawa & Hisako Nomura, 2021. "Gender Gaps in Market Participation Among Individual and Joint Decision-Making Farm Households: Evidence from Southern Ethiopia," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(3), pages 649-683, June.
    6. Girma Gezimu Gebre & Hiroshi Isoda & Dil Bahadur Rahut & Yuichiro Amekawa & Hisako Nomura, 0. "Gender Gaps in Market Participation Among Individual and Joint Decision-Making Farm Households: Evidence from Southern Ethiopia," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 0, pages 1-35.
    7. Patrick Denice, 2017. "Back to School: Racial and Gender Differences in Adults’ Participation in Formal Schooling, 1978–2013," Demography, Springer;Population Association of America (PAA), vol. 54(3), pages 1147-1173, June.
    8. Azam Mehtabul & Han Luyi, 2020. "Accounting for Differences in Female Labor Force Participation between China and India," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 20(2), pages 1-17, April.
    9. Zhu, Rong, 2016. "Wage differentials between urban residents and rural migrants in urban China during 2002–2007: A distributional analysis," China Economic Review, Elsevier, vol. 37(C), pages 2-14.
    10. Sonja C. Kassenboehmer & Mathias G. Sinning, 2014. "Distributional Changes in the Gender Wage Gap," ILR Review, Cornell University, ILR School, vol. 67(2), pages 335-361, April.
    11. Domenico Depalo & Raffaela Giordano & Evangelia Papapetrou, 2015. "Public–private wage differentials in euro-area countries: evidence from quantile decomposition analysis," Empirical Economics, Springer, vol. 49(3), pages 985-1015, November.
    12. Dueñas, Diego & Iglesias, Carlos & Llorente, Raquel, 2016. "¿Por qué las mujeres no se distribuyen de forma homogénea en el mercado de trabajo español? El “efecto rechazo” y el “efecto atracción”," El Trimestre Económico, Fondo de Cultura Económica, vol. 0(330), pages .339-369, abril-jun.
    13. Wolff, François-Charles, 2012. "Decomposition of non-linear models using simulated residuals," Economics Letters, Elsevier, vol. 116(3), pages 346-348.
    14. Carl Lin & Tony Fang & Mei Hsu, 2024. "Migrants from a Different Shore: Earnings and Economic Assimilation of Immigrants from China in the United States," Journal of Labor Research, Springer, vol. 45(3), pages 305-349, September.
    15. Nii-Aponsah, Hubert, 2022. "Automation exposure and implications in advanced and developing countries across gender, age, and skills," MERIT Working Papers 2022-021, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    16. Ercolani, Marco G. & Lazarova, Emiliya, 2024. "The UK Disability Discrimination Act 2005: Consequences for the education and employment of older children," Economics of Education Review, Elsevier, vol. 100(C).
    17. Pavel Ciaian & Andrej Cupák & Ján Pokrivčák & Marian Rizov, 2018. "Food consumption and diet quality choices of Roma in Romania: a counterfactual analysis," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 10(2), pages 437-456, April.
    18. ChangHwan Kim, 2010. "Decomposing the Change in the Wage Gap Between White and Black Men Over Time, 1980-2005: An Extension of the Blinder-Oaxaca Decomposition Method," Sociological Methods & Research, , vol. 38(4), pages 619-651, May.
    19. Vogel, Matt & van Ham, Maarten, 2016. "Disentangling Neighborhood Effects in Person-Context Research: An Application of a Neighborhood-Based Group Decomposition," IZA Discussion Papers 9793, Institute of Labor Economics (IZA).
    20. Carlos Gradin, 2009. "Why is Poverty So High Among Afro-Brazilians? A Decomposition Analysis of the Racial Poverty Gap," Journal of Development Studies, Taylor & Francis Journals, vol. 45(9), pages 1426-1452.

    More about this item

    Keywords

    Consumer/Household Economics;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:iaae18:277520. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.