Details
| Original language | English |
|---|---|
| Pages (from-to) | 143-172 |
| Number of pages | 30 |
| Journal | Social Indicators Research |
| Volume | 148 |
| Issue number | 1 |
| Publication status | Published - Feb 2020 |
Abstract
Credit is commonly considered an important instrument to relieve financial capital constraints of poor households and subsequently to improve their welfare. However, the empirical impact of credit on consumption inequality remains ambiguous. We use a 2-year panel dataset collected in Daklak, a province in the Central Highlands of Vietnam, to investigate the differences in access to credit and its impact on household consumption and consumption inequality between ethnic groups. Our results show that the differences in access to credit and in its impacts on household consumption between the ethnic majority and the migrant ethnic minority groups are insignificant. However, households from the indigenous ethnic minority group face more disadvantages in accessing formal credit and rely more on informal credit than those from the ethnic majority. They also face a higher collateral ratio and the amount of formal loans they could access is lower. The impact of formal credit on consumption of the majority is also higher than that of the indigenous minority, consequently causing a significant increase in consumption inequality between the ethnic groups. Our findings call for assistance programs to support indigenous households to improve their access to formal credit as well as to enhance the effectiveness of these loans.
Keywords
- Conditional-mixed process (CMP), Credit, Ethnicity, Inequality, Triple difference with fixed effects (DDD), Vietnam
ASJC Scopus subject areas
- Psychology(all)
- Developmental and Educational Psychology
- Arts and Humanities(all)
- Arts and Humanities (miscellaneous)
- Social Sciences(all)
- Sociology and Political Science
- Social Sciences(all)
- General Social Sciences
Sustainable Development Goals
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In: Social Indicators Research, Vol. 148, No. 1, 02.2020, p. 143-172.
Research output: Contribution to journal › Article › Research › peer review
}
TY - JOUR
T1 - Credit and Ethnic Consumption Inequality in the Central Highlands of Vietnam
AU - Nguyen, Thanh-Tung
AU - Nguyen, Trung Thanh
AU - Grote, Ulrike
N1 - Funding Information: We thank the farmers of the surveyed provinces for their support and cooperation. The constructive comments from the editor and two anonymous referees are highly appreciated. We acknowledge the financial support of the German Research Foundation (DFG - FOR 756) and appreciate the efforts of our colleagues at the Leibniz University Hannover for data collection.
PY - 2020/2
Y1 - 2020/2
N2 - Credit is commonly considered an important instrument to relieve financial capital constraints of poor households and subsequently to improve their welfare. However, the empirical impact of credit on consumption inequality remains ambiguous. We use a 2-year panel dataset collected in Daklak, a province in the Central Highlands of Vietnam, to investigate the differences in access to credit and its impact on household consumption and consumption inequality between ethnic groups. Our results show that the differences in access to credit and in its impacts on household consumption between the ethnic majority and the migrant ethnic minority groups are insignificant. However, households from the indigenous ethnic minority group face more disadvantages in accessing formal credit and rely more on informal credit than those from the ethnic majority. They also face a higher collateral ratio and the amount of formal loans they could access is lower. The impact of formal credit on consumption of the majority is also higher than that of the indigenous minority, consequently causing a significant increase in consumption inequality between the ethnic groups. Our findings call for assistance programs to support indigenous households to improve their access to formal credit as well as to enhance the effectiveness of these loans.
AB - Credit is commonly considered an important instrument to relieve financial capital constraints of poor households and subsequently to improve their welfare. However, the empirical impact of credit on consumption inequality remains ambiguous. We use a 2-year panel dataset collected in Daklak, a province in the Central Highlands of Vietnam, to investigate the differences in access to credit and its impact on household consumption and consumption inequality between ethnic groups. Our results show that the differences in access to credit and in its impacts on household consumption between the ethnic majority and the migrant ethnic minority groups are insignificant. However, households from the indigenous ethnic minority group face more disadvantages in accessing formal credit and rely more on informal credit than those from the ethnic majority. They also face a higher collateral ratio and the amount of formal loans they could access is lower. The impact of formal credit on consumption of the majority is also higher than that of the indigenous minority, consequently causing a significant increase in consumption inequality between the ethnic groups. Our findings call for assistance programs to support indigenous households to improve their access to formal credit as well as to enhance the effectiveness of these loans.
KW - Conditional-mixed process (CMP)
KW - Credit
KW - Ethnicity
KW - Inequality
KW - Triple difference with fixed effects (DDD)
KW - Vietnam
UR - http://www.scopus.com/inward/record.url?scp=85074035811&partnerID=8YFLogxK
U2 - 10.1007/s11205-019-02202-z
DO - 10.1007/s11205-019-02202-z
M3 - Article
AN - SCOPUS:85074035811
VL - 148
SP - 143
EP - 172
JO - Social Indicators Research
JF - Social Indicators Research
SN - 0303-8300
IS - 1
ER -