Tóm tắt Luận án Impact of microcredit on the income of poor households in the southeast region
i
RELATED STUDY WORKS
The scientific study topics
I
1. Nguyen Hong Thu et. al., (2016). Solutions to improve the performance of
microfinance in Binh Duong. Approved on Aug 19, 2016. (Chairman of
scientific research topic at grassroots levels).
2. Nguyen Hong Thu et. al., (2017). Factors affecting the income of poor
households through microcredit activities in Binh Duong. Approved on Oct
31, 2017. (Chairman of scientific research topic at grassroots levels).
II
The scientific articles published in journals
1. Nguyen Hong Thu, Pham Cong Luan and Tran Thi Cam Van (2017). Poverty
reduction in Binh Duong from the perspective of microfinance. Journal of
Thu Dau Mot University. No. 02 (33), Apr 2017.
2. Nguyen Hong Thu (2017). Social capital with access to micro-credit of rural
households in the Southeast region. Journal of the Asia Pacific Economy,
Mar 2017.
3. Nguyen Hong Thu and Nguyen Van Diep (2017). Impact of resources on
income of rural households in Binh Duong province. Journal of Economic
Management. No. 81 (Mar + Apr 2017).
4. Nguyen Hong Thu (2017). Microcredit with income of the poor in rural
Southeast region. Journal of the Asia Pacific Economy, Apr 2017.
5. Nguyen Hong Thu (2017). Access to microcredit of households in the lacquer
village in Binh Duong. Banking Technology Magazine. No. 134, May
2017.
6. Nguyen Hong Thu (2018). The role of microcredit in livelihoods of poor
households in the Southeast region. Journal of Economic Management, No.
88 (Apr + May 2018).
ii
CHAPTER 1: INTRODUCTION OF STUDY OVERVIEW
1.1. The necessityof study topic
Along with the activities of microfinance, microcredit contributes to the
practical effect of poverty reduction. It is an important tool in the fight against the
poverty, especially in developing countries (Humle and Mosley, 1996; Shaw, 2004).
In spite of that, this conclusion is still a matter continuing to be discussed and
increasingly attracted many different opinions of researchers, with each study, the
authors have introduced, analyzed different aspects and fields. There are some
options that impact relation of microcredit on income is statistically insignificant
(Sen, 2008; Rukiye, 2012) or other options showed that they did not find the impacts
of microcredit on the income of households (Diadup and Zeller, 2001); the study of
Morduch (1998) found that credit from the Grameen Bank in Bangladesh reduced the
vulnerability rather than poverty reduction and the study of Coleman (1999) showed
that they found only a significant impact of microcredit on the welfare of households
in Thailand.
Up to now, the government in most countries has recognized the active role of
microcredit to poverty reduction, its science research activities on microcredit are
increasingly attracting attention from many experts as well as scholars in the country
and abroad. In order to continue the inheritance, to understand the impact of
microcredit on the income of poor households and especially in the Southeast region,
there is no research conducted yet, but in this study, theoretical framework is formed
on the background of theories, the analysis based on the practical characteristics of
the region to clarify the objectives set out in the study. Before this context, the study
proposes the key issues that need to be explored, that are (1) to check the theoretical
point that microcredit affecting poverty reduction through income factor of the
households is necessary, (2) to improve income for poor households, it is needed to
3
improve the access to microcredit to the households and (3) how to improve the
access to microcredit to the poor to have additional capital to improve their income?
Therefore, the study topic needed to be implemented is “Impact of Microcredit on
the Income of Poor Households in the Southeast Region”.
1.2. Overview of the study topic
As part of the microfinance activity, microcredit is recognized contributing to the
enhancement of self-reliance and capacity to create product value, opening
opportunities for the poor to develop their livelihoods to improve and enhance the
quality of life. In Vietnam, the famous typical studies of authors such as Nguyen Kim
Anh et al., (2011) with the study of microcredit to the poor in Vietnam - Verification
and comparison, or a series of other studies on the poor such as evaluation of poverty
reduction policies in Ho Chi Minh City (Phung Duc Tung et al., 2013), evaluation of
poverty reduction models of foreign partners in Vietnam (Nguyen Duc Nhat et al.,
2013), ... Most of the studies have high consensus on the effectiveness of microcredit
with the poverty reduction war of the country. The studies above outlined the basic
modes of operation of microcredit both in the country and abroad, evaluated and
analyzed the impact of microcredit on the ability to generate income from customers.
However, these studies have just mentioned overall the impact of microcredit on
income. The objective of this thesis is to clarify the issues mentioned in this study
and practical application in the Southeast region.
1.3. Objectives and questions
1.3.1. General objectives
The objective of this thesis is to verify the hypothesis of the microcredit impact on
income for poor households and to identify factors affecting the access to microcredit
of the poor households in order to find solutions to increase income through
increasing access to microcredit for them.
4
1.3.2. Specific objectives
Based on the general objectives of the research, the thesis sets out three
specific objectives that need to be addressed as follows:
Study the impact of microcredit on the income of poor households in the
Southeast region.
Understand the impact of factors on access to microcredit of the poor
households.
Recommend the solutions contributing to income increasing for the poor
households through enhancing the access to microcredit and other non-financial
activities for poor households in the region.
1.3.3. Questions for study
To achieve the target set out, the thesis shall answer the following questions:
Does microcredit affect the income of poor households? And how the levels
of impact are?
How the access to microcredit of the poor households is? What solutions
should be taken to increase the access to microcredit for poor households?
What policy recommendations contribute to increase the income for poor
households through microcredit activities in the Southeast region?
1.4. Object and scope of study
1.4.1. Object of study
Originating from the urgency of study and practice in the study area, the thesis
determining the objects to be clarified in this study is the income of poor households
(specifically, the income of the microcredit borrowers and the non-microcredit
borrowers).
1.4.2. Scope of study
5
1.4.2.1.Scope of space
Provinces of the Southeast region, including Binh Duong, Binh Phuoc, Dong Nai and
Tay Ninh province.
1.4.2.2. Scope of time
Studying to understand and analyze the secondary data sources from relevant local
reports in the period of 2011 - 2017. Time for survey implementation is 2016.
1.5. Approach, study method, study data sources
1.5.1. Approach
The study uses the systematic approach. The study uses qualitative in combination
with quantitative research method.
1.5.2. Analysis method of the study
The study uses the statistical, analysis method of related primary and secondary data.
The method interviews 15 experts. The survey method using semi-structured
questionnaire with the surveyed subjects as poor households in the area.
1.5.3. Source of study data
Secondary data source.
Primary data source.
1.6. New points and contributions of the thesis
1.6.1. Contribution in terms of practicality
Firstly, the thesis has practical application in the current period when the
whole country has made a re-evaluation of the poverty reduction and is stepping into
a new phase with the application of the multidimensional poverty (period 2016-
2020).
6
Secondly, the thesis has proved that microcredit plays an important
contribution to poverty reduction strategy, especially in a Southeast region with a
high economic growth rate in the Southern key economic region of Vietnam.
1.6.2. Contribution in terms of academically
Firstly, the thesis summarizes the assessment comprehensively to the impact
of microcredit on the poor household incomes and affirms that microcredit is an
effective tool in poverty reduction strategy. Although there are still many
controversial discussions about the effectiveness of microcredit, within the scope of
this research, the thesis contributes to sum up relevant theoretical foundations. The
summing-up is meant to help the next researchers access the credit-income theory,
the theory to access microcredit, and the statistical implications with the impact of
microcredit, the impact of non-financial activities affecting the poor household
income.
Secondly, it compares and asserts that there is a difference in income between
the two groups of microcredit borrowers and non-microcredit borrowers. Particularly,
the group of microcredit borrowers has the average income higher than the group of
non-borrowers.
Thirdly, together with the microcredit activities, non-financial activities are
organized in parallel with the process of deploying financial resources to poor
households, which is assessed to be an efficient complementary activity, contributing
to improve the performance of microcredit with poverty reduction. This research
assumes that non-financial activity influences the ability to raise income to poor
households.
Fourthly, the social capital (SC), which currently has many studies to analyze
the influence of social capital on the participation in credit services in general, but the
understanding of the impact of social security on the access to microcredit in the
7
previous studies have not paid much attention; the thesis confirms that social capital
is an issue that is necessary to promote and expand during the performance of
poverty reduction strategy.
1.7. The structure of the thesis
The thesis consists of 5 chapters with the following contents:
Chapter 1: Introduction to study overview
Chapter 2: Overview of theoretical basis on microcredit to income of poor
households
Chapter 3: Research method
Chapter 4: Microcredit activities in the area and test results
Chapter 5: Conclusions of solutions
CHAPTER 2: OVERVIEW OF THEORETICAL BASIS ON MICROCREDIT
TO INCOME OF POOR HOUSEHOLDS
2.1. Micro credit
2.1.1. Concept
The term of “microcredit” shall be defined as “Microcredit is the provision of small
loans to poor, low-income borrowers to help them create the business, build the
asset, and increase the income”.
2.1.2. The role of microcredit for poverty reduction
Firstly, starting from the initiation by Prof. Muhamad Yunus from very small loans,
but it has helped thousands of poor workers have the opportunity to open the door to
earn the living. Although it is small loans, it comes to them when they need it most,
as a “lifebuoy” to help them overcome difficulties and obstacles. In Vietnam, the
small lending activity is provided by MFIs, financial institutions, NGOs or social
organizations in the formal, semi-formal and informal area (Nguyen Kim Anh et al.,
8
2011). Up to now, it still cannot deny the absence of the role of microcredit for
campaigns against poverty, especially in developing countries.
2.1.3. Overview of microcredit activities in countries around the world
Operation of Grameen Bank model in Bangladesh (GB)
Microcredit operation in Thailand
Microcredit operations in India
Microcredit operations in Indonesia
Microcredit operations in Canada
2.2. Poverty
2.2.1. Concept
Poverty: The World Bank (2011) considers that poverty is divided into different
levels: absolute poverty, relative poverty and poverty with minimal demands as
follows:
+ Absolute poverty: is the status that a part of the population in the poor area is
unable to satisfy the minimum demands of life: eating, wearing, living, traveling, ect.
+ Relative poverty: is the status that a part of the population in the poor area has the
living below the average living standard of the considered community and locality.
+ Poverty with minimum demands: is the status that a part of the population has the
minimum subsistence to maintain their livelihoods, such as enough food, clothing,
living and some daily activities but at a minimum level.
2.2.2. Poverty line of some countries in the world
The popular standard of calories/day in some ASEAN countries is as follows:
9
In India, the standard is 2250 calories/person/day. In Bangladesh, the standard is
2100 calories/person/day.
In Indonesia: In the early 1980s, the consumption of calories was 2100
calories/person/day as a standard to determine the boundaries between rich and poor.
In China: In 1990, the consumption of calories was 2150 calories/person/day.
Industrialized countries in Europe: 2570 calories/person/day.
2.2.3. Poverty line of Vietnam
In the 1990s, the poverty line in Vietnam was defined as: households with income per
capita in rural and mountainous areas are from 45,000 VND/person/month (540,000
VND/person/year) downwards. In rural and delta areas, the households with average
income per capita was VND 70,000/person/month (840,000 VND/person/year). In
urban areas, the income per capita was 100,000 VND/person/month (1,200,000
VND/person/year). In 2006, the poverty line in rural areas was 200,000
VND/person/month and in urban areas was 260,000 VND/person/month. In the
period of 2011-2015, the poverty line was 500,000 VND/person/month (urban area)
and 400,000 VND/person/month (rural area)
2.3. Income
2.3.1. Concept
The General Statistics Office (GSO) (2011) defines that: Income is the total amount
of money that a person or family earned in a day, a week or a month, or more
specifically, all that a person earned when devoting the work force properly, so it is
called income. The monthly income per capita is calculated by dividing the total
income in year of the household by the number of household members and dividing
by 12 months.
10
2.3.2. Factors affecting income
The income of each individual is obtained from devoting the work force,
participating in labor activities. The contribution of labor force of each individual
brings income to each individual and family. That contribution brings economic
value to the family through daily, monthly or even annually income for the
household. Therefore, to create the valuable products, it requires a combination of
physical capital and human capital (Ismail and Yussof, 2010). The combination of
human capital and physical capital produces the labor value expressed by the added
value of income achieved. In human labor activities, these two inseparable factors as
follows.
- Relationship between financial capital and income
Capital is considered as a “lever” for the process of economic growth and
development, a stimulation of the process of expanding the scale of production,
implementation of economic projects and a contribution to increase the benefits,
create the momentum to the economic development process. When credit markets are
limited, the producing decision of a household depends on the price of market
efficiency, p, the characteristics of production and the characteristics of access to
q h
(
)
credit shall be: q q K .
p
- Difference in income
The Neoclassical economists gave the theories: Human capital theory, income and
discrimination theory, production theory ... to explain the fundamental differences in
the income of individuals or households. Thus, the income is a multivariate function
depending on many different factors (Y =f (x1,x2,x3…xn). Today, to analyze the
impact of factors on income, the function most commonly used in the analysis is the
Cobb-Daughlas function. The Cobb-Daughlas function has the form as follows:
α1
α2
αn
Y = A.X1 X1 . Xn .eβiD+x D +λ D
.
i 1 i 2
11
In which, Y is the income; A is the constant; X
i (i 1,n)
is the independent variable
affecting the dependent variable, Y, (income). The hypothesized independent
variables include credit, household characteristics, environmental factors and related
policies; e is factors other than factor Xi. In addition to the Cobb-Daughlas function,
there is also a semi-logarithm function: LN(Y)=β0+β1X1+β2X2+…+βnXn+ei (Mincer,
1974). Or multivariate linear function such as Y = β0 + β1X1 + β2X2 +…+ βnXn + ei is
also widely used to estimate household income. From here, the study selects the
proposes the research model that is a regression model with the form of multi-
variable linear function to evaluate the impact of microcredit on income of poor
households as follows:
Y = β0 + β1X1 + β2X2 +…+ βnXn + ei
2.3.3. Microcredit for income generating activities
Microcredit is needed to help poor households generate income (Krog, 2000).
Microcredit activities are used in developing countries and are highly effective in
poverty reduction, especially microcredit focuses on women customers in rural areas,
who have no accessibility capital resources from other financial institutions by
barriers on collateral and complex and cumbersome procedures, helping them to
create jobs and generate income (Mohanan, 2005).
2.4. Overview of access credit theory and barriers to access to credit
2.4.1. Asymmetric information in credit transaction and credit restriction
Asymmetric information occurs when the borrower understands their ability to repay
their loans while the lender does not know the borrower’s limitations. At the same
time, the borrower does not collect enough information about the loan or the lending
institutions. As a result, the borrower desires to borrow but cannot access to the loan;
and the lender does not know the customers who need the loan and bringing about the
12
consequences associated such as lending under the relationship, other complicated
and cumbersome procedures such as collaterals, guarantors, etc. But to meet these
conditions, most small and micro enterprises, poor households and low income
households cannot meet this condition.
2.4.2. Social capital, measurement of social capital and accessibility to credit
Until 1990, the American sociologist, James Coleman, gave the concept that social
capital as the characteristics in the everyday life, social networks, norms, and social
trust helps members in the society to work together effectively to achieve the
common goals. Bourdieu (1986) defines that social capital is derived from a direct
or indirect network, and is a durable network of interrelated relationships that are be
acquainted and recognize each other.
2.4.3. Characteristics of households, environmental factors and policies with
access to credit
Environmental factor with the distance on geographic gap, housing location and
characteristics of the living area, and the inadequacy of imperfect information make it
difficult for customers to access capital but they have to deal with difficulties to
access (Le Khuong Ninh, 2016, Nguyen Trong Hoai, 2005). People who want to
borrow cannot borrow and people who do not need the loans are more likely to get
access, thereby creating distorting motives when borrowing, to get the loans, people
who want to borrow seeks the way to get loans through the relationship, leading to
asymmetry in the supply and demand of credit in the financial market.
2.5. Overview of relevant research documents
13
Table 2.2. Summary table of relevant research results
Studies
Object and scope
of study
Study method
Study results
Microcredit withincome
Quach Manh Hao Access to credit With a cross-sectional dataset and Characteristics
and poverty econometric model analysis through affecting the access to credit and
reduction in rural the field survey data and the
of
household
(2005)
income of poor households
population living standard survey
dataset VLSS 1992/1993 VLSS and
VLSS 1997/1998
Vietnam
Phan Dinh Khoi Living standards of With a cross-sectional dataset for The impact of microcredit on income
poor households in survey in the Mekong Delta, the study has not been demonstrated clearly in
(2012)
used the Propensity Score Matching
(PSM) technique and Instrumental
Variable (IV-PE) method in the
statistical analysis.
the Mekong Delta
this study.
Phung Duc Tung et The
work
of Quantitative and qualitative method Credit has impact on poverty
reduction
poverty reduction with discontinuous regression model
al., (2013)
in Ho Chi Minh
City in period of
2009-2013
in the study
14
Dinh Phi Ho & Income of poor The study uses the Difference in Credit has officially impacted on
households
in Differences (DID) method to assess
household incomes and expenditures.
Dong Duc (2015)
Vietnam in the the impact of formal credit on
period of 2006- incomes and expenditures of farmer
2012
households
Study
microcredit
activities in India
the
Microcredit affects the income-
generating capacity of the poor,
empowering the women position.
Mohanan (2005)
Qualitative research method
Islam and Ahmed Study
the Quantitative method with statistical Microcredit affects the ability to do
microcredit impact
business, create jobs, and build assets
of customers
(2010)
analysis through SEM linear model
on
income
generating
activities
customers
of
Study
the
Microcredit offers borrowers the
opportunity to increase the labor
changes, diversify the livelihoods for
poor households
Brown (2010)
Qualitative research method
microcredit impact
on economic
development, job
creation and
income generation
The role
microcredit
of The qualitative analysis method with Microcredit has no statistically
in the analysis of random interview data
Ahmed et al., (2011)
15
economic
from 20 people surveyed
significant impact
development
and
poverty reduction
Microcredit with Quantitative research method with Microcredit helps improve the
income of women logit regression model, survey data business skills and generate the
Vitor et al., (2012)
Rykiye (2012)
from
300
microcredit
women
income of credit women borrowers.
in Central Ghana
borrowers
Study
microcredit
the The survey data analysis method from MICROCREDIT does not have an
with 2,036 observations of poor households impact on income, microcredit
income change of
participating
borrowers as a normal need for
capital.
in Turkey
members
Study
differences
income
the Quantitative analysis method with There is a difference in income
in Propensity Score Matching (PSM) between borrowers and non-
Ayen (2016)
of from the female head of household
survey dataset at Jimma Zone
borrowers
microcredit
borrowers and non-
borrowers
Accessibility to credit of households
Nguyen Quoc Oanh Study the accessibility Quantitative method with two- The monthly income and purpose of
and Pham Thi My step regression technique of borrowing affects accessibility to
16
Heckman (1999) through a
survey dataset of 116 households
Dung (2010)
of formal credit
formal credit of households.
Nguyen Phuong Le Accessibility to formal Statistical method describes the The families with better economic
and Nguyen Mau credit
resources
of survey data from 60 households
interviewed based on the pre-set
questionnaire structure
conditions can access higher credit
Dung (2011) farmer households
Phan Dinh Khoi Formal and informal Statistical analysis based on Income, employment of households
accessibility of farmers survey data of 358 observation
(2013)
affect accessibility of households.
samples
from
919
rural
in the Mekong Delta
households
Tran Ai Kiet and Accessibility to formal Statistical analysis based on the The values of assets, income, and
Huynh Trung Thoi credit of farmers in An survey results of 150 farmer purpose of borrowing affect the
accessibility to formal credit of
farmer households.
(2013)
Giang
households in the studied area
Accessibility
to Causal analysis compares the Rural households may participate
AFD (2008)
microcredit of rural ability
to
borrow
from more in microcredit loan when they
have stable income and are not
affected by seasonal factor.
households in Morocco microcredit
Ibrhim and Bauer Access to microcredit Quantitative method with probit The characteristics of households
and the impact of the
microcredit approach to
with members with good production
experience can access more
(2013)
regression technique
17
income
of
farmer
households
Masud and Islam Study the social capital Quantitative method with probit Social capital affects the access to
with access to credit of regression technique through
(2014)
credit of households
households
Bangladesh
in random survey data from 153
households in Bangladesh
Source: Summaries of the author
18
2.6. Theoretical foundations forming theoretical frameworks for study and
the establishment of research hypotheses
Theory of capital resource of Ismail and Yussof (2010) shown that income is
formed by physical capital and human capital. Physical capital is acquired by
themselves or borrowing in the form of monetary or physical (physical is shown
in the form of assets, labor materials, means of production, etc.). Human capital
is gained through the labor accumulation, which is the skills and knowledge
accumulated during the learning and life experience. During creating value for
labor product, it cannot lack one of these two elements above; they complete
each other and indispensable in every human activity. Human capital is
involved in the operation, creation on the basis of physical capital and vice
versa. Thus, when considering the income of an individual, a family needs a
general assessment of the many factors that make up the value of income.
Therefore, to assess the income of poor households, it is necessary to assess
overall between the income and access of microcredit of households. Speeding
up income for poor households on the basis of increasing access to microcredit
for poor households. With the above arguments, the thesis establishes two
research models and needs to be clarified in the study and theoretical
framework of the study formed as Figure 2.2.
Social capital
Microcredit
Household
Household
characteristics
Access
to MC
characteristics
Income
Environment and
preferential credit
Environmental
characteristics and
non-financial
policies of the locality
activities
19
Figure 2.2. Theoretical framework for study
Source: The author proposes based on theory foundations and previous studies
Based on the above studies and based on the arguments of the research theory
foundations, the thesis formed hypothesis on income of households affected by
the following groups of hypothesis:
(1) Microcredit (group of hypothesis H1);
(2) Household characteristics (employment, number of labor generating jobs,
number of dependents in the family - group of hypothesis H2);
(3) Environmental characteristics and non-financial activities (group of
hypothesis H3)
Thus, it shown that, in order to promote the income increasing, it requires to
increase accessibility to microcredit for them. The thesis establishes a
Microcredit access model based on the foundations of the previous theory and
studies. The summarized groups of hypothesis are included:
(1) Social capital (group of hypothesis H4);
(2) Household characteristics (income, employment - group of hypothesis
H5);
(3) Environment and preferential credit policies of the locality (group of
hypothesis H6).
2.7. Gaps in research
Through examine summarily the relevant studies, most studies affirm that
microcredit offers many benefits to the poor such as increasing welfare,
increasing empowerment for women, generating income and improving the
living.
By this argument, it shown that the gaps should continue to be inherited and
clarified in the study are: (1) the study of the microcredit impact on the income
of poor households and to find out whether there is the income difference
between two groups of microcredit borrowers and non-borrowers? (2) the
20
Tải về để xem bản đầy đủ
38 trang
15400
Free
Bạn đang xem 20 trang mẫu của tài liệu "Tóm tắt Luận án Impact of microcredit on the income of poor households in the southeast region", để tải tài liệu gốc về máy hãy click vào nút Download ở trên
File đính kèm:
- tom_tat_luan_an_impact_of_microcredit_on_the_income_of_poor.pdf
