The impact of microfinance on household welfare in rural Vietnam

A case study in Phu Tho province

Thi Hai Yen Dang, Teruaki Nanseki, Yosuke Chomei

研究成果: ジャーナルへの寄稿記事

抄録

In Vietnam, microfinance is regarded as one of the important measures to reduce poverty. However, empirical findings indicated that microfinance services can only meet less than half of the poor's demand. About 3.6 poor and near poor households remained vulnerable to external shocks in 2012. Therefore, this study aims to examine whether and to what extent microfinance programs have helped to increase household economic welfare in rural Vietnam. A survey was conducted in Phu Tho province - one of the poorest areas in the northern of Vietnam through face-to-face structured interviews with 257 respondents. The study employs a two stage least square regression model to deal with self-selection bias in the evaluation of the impact of microfinance on household welfare. The main outcome indicates that formal microfinance has helped to increase the household economic welfare in terms of per capita income, expenditure and value of non-land asset of the household with the coefficients are 0.002, 0.004, 0.003, respectively. Although the effect is small, microfinance has helped the better-off groups to increase their income and expenditure, while the poor groups increase their expenditure and acquire more assets, implying that the credit is distributed to other purpose besides income generating. However, these small impacts suggest a further study about the cost-effective of the microfinance programs.

元の言語英語
ページ(範囲)185-189
ページ数5
ジャーナルJournal of the Faculty of Agriculture, Kyushu University
63
発行部数1
出版物ステータス出版済み - 2 1 2018

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Vietnam
family resource management
households
assets
case studies
Health Expenditures
income
credit
poverty
Economics
least squares
interviews
Selection Bias
Poverty
Least-Squares Analysis
Shock
Interviews
Costs and Cost Analysis
Surveys and Questionnaires

All Science Journal Classification (ASJC) codes

  • Biotechnology
  • Agronomy and Crop Science

これを引用

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abstract = "In Vietnam, microfinance is regarded as one of the important measures to reduce poverty. However, empirical findings indicated that microfinance services can only meet less than half of the poor's demand. About 3.6 poor and near poor households remained vulnerable to external shocks in 2012. Therefore, this study aims to examine whether and to what extent microfinance programs have helped to increase household economic welfare in rural Vietnam. A survey was conducted in Phu Tho province - one of the poorest areas in the northern of Vietnam through face-to-face structured interviews with 257 respondents. The study employs a two stage least square regression model to deal with self-selection bias in the evaluation of the impact of microfinance on household welfare. The main outcome indicates that formal microfinance has helped to increase the household economic welfare in terms of per capita income, expenditure and value of non-land asset of the household with the coefficients are 0.002, 0.004, 0.003, respectively. Although the effect is small, microfinance has helped the better-off groups to increase their income and expenditure, while the poor groups increase their expenditure and acquire more assets, implying that the credit is distributed to other purpose besides income generating. However, these small impacts suggest a further study about the cost-effective of the microfinance programs.",
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AU - Nanseki, Teruaki

AU - Chomei, Yosuke

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