Representation of property rights and credit market outcomes: Evidence from a land reform in Vietnam

Niels Kemper, Rainer Klump and Heiner Schumacher

No 45, Proceedings of the German Development Economics Conference, Berlin 2011 from Verein für Socialpolitik, Research Committee Development Economics

Abstract: This article evaluates the impact of a land certification program on credit market outcomes in rural Vietnam. We hypothesize that the representation of property increases households' participation in formal credit markets. We compare credit market outcomes for certified and non-certified households controlling for socioeconomic and geographic characteristics, and use an instrumental variable approach exploiting a partial delay in program rollout. Certified households are more likely to borrow from formal banks with a collateral-based lending policy. There is no evidence for an effect on borrowing from formal sources without such a policy. Moreover, certified households pay lower interest rates on formal loans than non-certified households on formal and informal loans.

Keywords: Credit; Land reform; Vietnam (search for similar items in EconPapers)
JEL-codes: C2 O1 (search for similar items in EconPapers)
Date: 2011
New Economics Papers: this item is included in nep-mfd and nep-tra
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:gdec11:45

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