THE ABILITY TO ACCESS OFFICIAL CREDIT OF POOR HOUSEHOLDS IN THE MOUNTAINOUS AREAS OF THAI NGUYEN PROVINCE

Abstract

This study was conducted with the purpose of examining the access to official credit by poor households, using cross-sectional data taken from a survey of 300 poor households in mountainous areas of Thai Nguyen province. The study applies the Probit model to identify the factors that affect the ability to access official credit and the Tobit model to determine the factors affecting the amount of loan. The research results show that the factors affecting the access to credit of households include age, ethnicity, education, labor ratio, main occupation, non-production assets, and residential land. The factors affecting the amount of loan by households include age, ethnicity, household members, main occupation, non-production assets, and residential land.