Does Microfinance Improve the Household Welfare of Ethnic Minorities? Evidence from Bac Kan Province, Vietnam

Vu Ha Thu and Daisaku Goto
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Vu Ha Thu: Graduate School for International Development and Cooperation, Hiroshima University, Higashi-Hiroshima, Hiroshima, Japan

Progress in Development Studies, 2020, vol. 20, issue 1, 65-83

Abstract: Although a large number of studies have investigated the impacts of microfinance on rural households, their effects on ethnic minorities, who are among the left-behind groups, have not been evaluated. This study examines whether microfinancing provided by the Vietnam Bank for Social Policies (VBSP) improves the household welfare of ethnic minorities living in northern mountainous regions of Vietnam. A stratified random sampling technique is applied to a sample of 289 households. Propensity score matching (PSM) is used to estimate the impacts of microfinance loans. Coarsened exact matching (CEM) is employed to verify the consistency of the PSM estimates. The results show positive and consistent impacts of microfinance loans on total expenditure per capita and educational expenditure per student, which supports the welfare effects of microfinance loans on ethnic minorities in northern mountainous areas of Vietnam.

Keywords: Microfinance; ethnic minorities; propensity score matching; household welfare; educational expenditure; Vietnam (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:prodev:v:20:y:2020:i:1:p:65-83

DOI: 10.1177/1464993419886230

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