The Impact of Microcredit on Self‐Employment Profits in Vietnam

39 Pages Posted: 16 Dec 2011

See all articles by Robert Lensink

Robert Lensink

University of Groningen - Department of Economics, Econometrics and Finance; Wageningen UR - Development Economics Group

Thi Thu Tra Pham

University of Groningen - Department of Finance & Accounting

Date Written: January 2012

Abstract

This study examines the impact of microcredit on household self‐employment profits in Vietnam. For two indicators of credit participation – a dichotomous participation dummy and the accumulated amount of microcredit received per household – the analysis reveals a positive effect on household profits. The analysis also reveals that an instrumental variable method within a fixed‐effects framework can control for the possible endogeneity of credit and thereby identify the true effect of credit.

Keywords: Microcredit, self‐employment profits, poverty reduction, Asia, Vietnam

JEL Classification: G21, O16, I30, C23

Suggested Citation

Lensink, Robert and Pham, Thi Thu Tra, The Impact of Microcredit on Self‐Employment Profits in Vietnam (January 2012). Economics of Transition, Vol. 20, Issue 1, pp. 73-111, 2012, Available at SSRN: https://ssrn.com/abstract=1973461 or http://dx.doi.org/10.1111/j.1468-0351.2011.00427.x

Robert Lensink (Contact Author)

University of Groningen - Department of Economics, Econometrics and Finance ( email )

P.O. Box 800
9700 AH Groningen
Netherlands

Wageningen UR - Development Economics Group ( email )

Hollandseweg 1
WAGENINGEN, 6706 KN
Netherlands

Thi Thu Tra Pham

University of Groningen - Department of Finance & Accounting ( email )

P.O. Box 800
9700 AH Groningen
Netherlands

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