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Are households’ poverty levels in Mekong Delta of Vietnam affected by access to credit?

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  • Vuong Quoc, Duy

Abstract

This paper investigates the impact of access to formal credit on household poverty in Mekong Delta (MD) – Vietnam. The analysis is based on some indicators of household poverty such as households’ total assets, educational costs, healthcare costs, food consumption, non-farm expenses, off-farm expenses and total income. Based on the given indicators, a comparison is made between borrowers and non-borrowers in a sample of 325 households using the Matching Methods. The findings suggest that the borrowers are better off in education expenditure, healthcare expenses, and total income than those of non-borrowers. The results show that access to formal credit is likely to reduce poverty levels among rural households in Mekong Delta.

Suggested Citation

  • Vuong Quoc, Duy, 2011. "Are households’ poverty levels in Mekong Delta of Vietnam affected by access to credit?," MPRA Paper 35412, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:35412
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    References listed on IDEAS

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    More about this item

    Keywords

    Formal credit; propensity score matching; household welfare; individual and group based lending;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

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