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Access to Rural Credit and Its Effects on Income Equality: Study about rural households in Vietnam

Ellertsson, Davíð (2012)
Centre for East and South-East Asian Studies, Lund University
Abstract
This thesis uses Vietnamese household’s surveys from 2006 and 2008 to assess income inequality in Vietnam and households access to credit in order to boost their income. Three econometric models are introduced to explain which factors affect income, household’s value and loan value, all important factors in order to obtain loans in theory. The Vietnamese financial market is still underdeveloped where households can obtain loans through three different channels, formal market, informal market and micro credit programs. The Vietnamese government has been working to make credit more accessible to poor rural areas in order to encourage investment and move them out of poverty. The results show that poor households are receiving high loan... (More)
This thesis uses Vietnamese household’s surveys from 2006 and 2008 to assess income inequality in Vietnam and households access to credit in order to boost their income. Three econometric models are introduced to explain which factors affect income, household’s value and loan value, all important factors in order to obtain loans in theory. The Vietnamese financial market is still underdeveloped where households can obtain loans through three different channels, formal market, informal market and micro credit programs. The Vietnamese government has been working to make credit more accessible to poor rural areas in order to encourage investment and move them out of poverty. The results show that poor households are receiving high loan amounts in 2006 resulting in a slight decrease in income inequality between the selected years. There is however no consistency between the years, along with that we see that there are many different obligations that households need to fulfill in order to be applicable for loans (both in the formal market and micro credit programs) indicating that there is not equal access to credit for households. (Less)
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author
Ellertsson, Davíð
supervisor
organization
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Vietnam, household survey, rural credit, income inequality
language
English
id
3021603
date added to LUP
2012-08-22 10:34:29
date last changed
2013-06-28 09:42:50
@misc{3021603,
  abstract     = {This thesis uses Vietnamese household’s surveys from 2006 and 2008 to assess income inequality in Vietnam and households access to credit in order to boost their income. Three econometric models are introduced to explain which factors affect income, household’s value and loan value, all important factors in order to obtain loans in theory. The Vietnamese financial market is still underdeveloped where households can obtain loans through three different channels, formal market, informal market and micro credit programs. The Vietnamese government has been working to make credit more accessible to poor rural areas in order to encourage investment and move them out of poverty. The results show that poor households are receiving high loan amounts in 2006 resulting in a slight decrease in income inequality between the selected years. There is however no consistency between the years, along with that we see that there are many different obligations that households need to fulfill in order to be applicable for loans (both in the formal market and micro credit programs) indicating that there is not equal access to credit for households.},
  author       = {Ellertsson, Davíð},
  keyword      = {Vietnam,household survey,rural credit,income inequality},
  language     = {eng},
  note         = {Student Paper},
  title        = {Access to Rural Credit and Its Effects on Income Equality: Study about rural households in Vietnam},
  year         = {2012},
}