Abstract
The authors investigated the role of formal and informal credit in non-farm activities among Vietnamese rural households using pooled cross-sectional data from household surveys in 2016 and 2018. The econometric analysis confirms that households with more loans are more likely to engage in non-farm activities and increase the intensity of such activities. The probability and intensity of non-farm activities are also determined by the level of education and occupation of household heads. In addition, the presence of non-farm opportunities and access to roads in a commune increase the chance of non-farm participation for households living in that commune. The study suggests that policy interventions for promoting rural non-farm economy should aim to improve rural households’ access to formal credit, better education, and non-farming opportunities.
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Authors Affiliations
Dinh Van Nguyen* (1)
(1) Vietnam National University, Hanoi, Vietnam
* Correspondence address
Email: dinhnvisvnu@gmail.com
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