Files
Abstract
In this paper we analyse the effects of microfinance programs upon
household welfare in Vietnam. Our analytical framework builds upon the
rural household models of Singh et al. (1986) and Rosenzweig (1990). Data
on 470 households across 25 villages was collected using a quasiexperiment
survey approach to overcome self-selection bias. In our
econometric analysis the welfare effects of microfinance are proxied using
measures of household income and consumption. The empirical results
indicate that participation in microfinance has a positive effect upon
household welfare, with the size of the effect increasing at a decreasing rate
as a household spends more time in the microfinance program.