Income Impacts of Credit on Accessed Households in Rural Vietnam: Do Various Credit Sources Perform Differently?

DOI 10.7160/aol.2016.080106
No 1/2016, March
pp. 57-67

Luan, D. X., Bauer, S. and Kühl, R. (2016) “Income Impacts of Credit on Accessed Households in Rural Vietnam: Do Various Credit Sources Perform Differently?”, AGRIS on-line Papers in Economics and Informatics, Vol. 8, No. 1, pp. 57 - 67. ISSN 1804-1930. DOI 10.7160/aol.2016.080106.


This study uses the Propensity Score Matching to examine the income impact of different credit sources on accessed households in the Northern Mountains of Vietnam. Results show that overall rural credit serves an important role in improving household income with respect to total income, per capita income and non- farm income. However, different credit affects recipients heterogeneously. Whereas a significant increase in household income can be achieved through accessing commercial and informal loans, there is no significant increase of all income components associated recipients of preferential credit. These results imply that a successful credit scheme needs to consider variations in transaction costs, disbursement scheme, loan characteristics and typical socio-economic conditions of credit recipients.


Impact, household income, rural credit, Vietnam.


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