Impacts of Loan Support Policy on Farm Income in Vietnam

Thien Ly Dao, Thai-Ha Le and Binh Tran-Nam
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Thien Ly Dao: Good Neighbors International, Vietnam; Fulbright University Vietnam, Vietnam
Binh Tran-Nam: University of New South Wales, Australia

Journal of Economic Development, 2023, vol. 48, issue 2, 53-81

Abstract: Assessing the impact of agricultural policies is challenging due to resource limitations and problem identification. This study evaluates the impact of a loan support program on the income of agricultural farms in Vietnam’s crop cultivation and aquaculture sectors. Using the regression discontinuity method and data from Vietnam’s Rural, Agriculture, and Fishery report, encompassing 15,749 farms across 23 provinces in the Central Highlands, Southeast, and Mekong River Delta, we analyze the program’s effects based on farmland holding size. Results indicate a positive impact on annual crops value but a negative impact on income from rice cultivation. Income from perennial crops, such as coffee, showed little increase, while income from pepper cultivation decreased. However, income from aquaculture demonstrated an increase. Overall, the program positively influenced total income with an annual increase of approximately 14.5%. It is evident that the loan support policy is suitable for farm development but may not always yield positive outcomes for specific activities.

Keywords: Loan; Farm; Fuzzy regression discontinuity; Income; Vietnam (search for similar items in EconPapers)
JEL-codes: Q12 Q14 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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