TAILIEUCHUNG - Impact of household credit on education and healthcare spending by the poor in peri urban areas, Vietnam

This paper contributes to the limited literature on peri-urban areas using evidence from one of the largest and most dynamic cities in Southeast Asia. There is an ongoing debate about whether microfinance has a positive impact on education and health for borrowing households in developing countries. | ISSN 2339-5095 print / ISSN 2339-5206 electronic Journal of Southeast Asian Economies Vol. 31, No. 1 (2014), pp. 103–19 DOI: OTHER ARTICLES Impact of Household Credit on Education and Healthcare Spending by the Poor in Peri-Urban Areas, Vietnam Tinh Doan, John Gibson and Mark Holmes There is an ongoing debate about whether microfinance has a positive impact on education and health for borrowing households in developing countries. To understand this debate, we use a survey designed to meet the conditions for propensity score matching (PSM) and examine the impact of household credit on education and healthcare spending by the poor in peri-urban areas of Ho Chi Minh City, Vietnam. In addition to matching statistically identical non-borrowers to borrowers, our estimates also control for household pre-treatment income and assets, which may be associated with unobservable factors affecting both credit participation and the outcomes of interest. The PSM estimates show a significant and positive impact of borrowing on education and healthcare spending. However, further investigation of the effects of the treatment reveals that only formal credit has a significant and positive impact on education and healthcare spending, while informal credit has an insignificant impact on spending. This paper contributes to the limited literature on peri-urban areas using evidence from one of the largest and most dynamic cities in Southeast Asia. Keywords: Matching, education and healthcare spending, household credit, the poor, peri-urban. I.  Introduction Microfinance has increasingly attracted attention from the global development community because it is considered a powerful tool for alleviating Journal of Southeast Asian Economies poverty in developing countries. An argument commonly made in support of microfinance is that it may help keep household production stable and mitigate adverse shocks, thus preventing school 103 Vo l . 3 1 , N o . 1 , A p r i l 2 0 1 .

• Ngân hàng - Tín dụng
• Journa science
• International journal of financial research
• Education and Healthcare spending
• Household credit
• Healthcare spending by the poor
• Asian social science
• Kaizen practices
• Vietnamese manufacturing companies
• Renovation policy economy
• Market oriented economy
• Knowledge sharing
• Explicit knowledge
• Tacit knowledge
• Service quality
• Retail industry
• Automobile industry
• Data envelopment analysis
• Vietnamese automobile firms
• Beverage enterprises
• Vietnamese food
• Accounting practices
• Multinomial logit model
• Interest rates
• Monetary policy
• Small and medium sized enterprises
• Lean management
• Lean implementing models
• Market segment selection
• Fuzzy QFD
• Fuzzy TOPSIS
• Non farm opportunities
• Economic growth a
• Value at Risk modelling
• Warsaw Stock Exchange
• Realized volatility
• Social feminist theory
• Liberal feminist theory
• Firm performance
• Rural credit
• Poverty reduction
• Poor household
• Northwest of Vietnam
• Developing countries
• Manufacturing sector
• Trade liberalization
• Export aversion
• Macro environment
• International business management
• Family business
• Convenience store chain
• Asymmetric volatility
• EGARCH model
• VAR model
• volatility spillovers
• Exchange rate variations
• Agricutural exports
• Agricutural market
• Behavioral economics
• Generation Y
• Facebook banking
• Retail banking services
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• Input Output analysis
• Green banking
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• Gini decomposition
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