Journal of Finance and Economics

Journal of Finance and Economics

ISSN: 2291-4951 (Print)    ISSN: 2291-496X (Online)

Volume 3 (2015), No. 1, Pages 31-43

DOI: 10.12735/jfe.v3i1p31

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How Credit Affects the Poor Household’s Expenditure?: A Case Study of Vietnam

Tran Thi Giang1,2  Guohua Wang1  Nguyen Dinh Chien2 

1College of Public Administration, Huazhong University of Science and Technology, China
2College of Economics, Hue University, Vietnam

URL: 2 (Details)

To Cite this Article     Article Views: 830     Downloads: 424  Since deposited on 2015-05-21


This paper aims to clarify the impact of the credit for the expenditure of poor households in Vietnam. We have used Difference in Difference (DID) methods to estimate the panel data from Vietnam Living Standard Survey (VLSS) for the period of 2010-2012. The results showed that the credit has a positive influence to the average expenditure of the poor households, whether in formal credit or informal credit. However, informal credit is still a very important source of credit for poor households in Vietnam because it increases expenditure of poor households higher than formal credit. In addition, research also found significant effects of some factors such as regional, ethnicity, education level, household size to expenditures.

JEL Classifications: C33, H81, P36, H31

Keywords: credit, poor household’s expenditure, Vietnam

To Cite this Article: Giang, T. T., Wang, G. H., & Chien, N. D. (2015). How credit affects the poor household’s expenditure?: A case study of Vietnam. Journal of Finance and Economics, 3(1), 31-43.

Copyright © Tran Thi Giang et al.

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This article is published under license to Science and Education Centre of North America. This is an Open Access article distributed under the terms of the Creative Commons Attribution 4.0 International License.

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How Credit Affects the Poor Household’s Expenditure?: A Case Study of Vietnam