Rural Credit in Vietnam

TY - UNPB

T1 - Rural Credit in Vietnam

AU - Barslund, Mikkel Christoffer

AU - Tarp, Finn

N1 - JEL Classification: O12, O16, O17, O1

PY - 2006

Y1 - 2006

N2 - This paper uses a survey of 932 rural households to uncover how the rural credit market operates in four provinces of Vietnam. Households obtain credit through formal and informal lenders, but formal loans are almost entirely for production and asset accumulation. Interest rates fell from 1997 to 2002, reflecting increased market integration; but the determinants of formal and informal credit demand are distinct. Credit rationing depends on education and credit history, but we find no evidence of a bias against women. Regional differences are striking, and a ‘one size fits all’ approach to credit policy is clearly inappropriate.

AB - This paper uses a survey of 932 rural households to uncover how the rural credit market operates in four provinces of Vietnam. Households obtain credit through formal and informal lenders, but formal loans are almost entirely for production and asset accumulation. Interest rates fell from 1997 to 2002, reflecting increased market integration; but the determinants of formal and informal credit demand are distinct. Credit rationing depends on education and credit history, but we find no evidence of a bias against women. Regional differences are striking, and a ‘one size fits all’ approach to credit policy is clearly inappropriate.

KW - Faculty of Social Sciences

KW - rural credit

KW - household survey

KW - Vietnam

M3 - Working paper

BT - Rural Credit in Vietnam

PB - Department of Economics, University of Copenhagen

CY - Cph.

ER -