Informal Credit, Usury, or Support? A Case Study for<scp>V</scp>ietnam

Cuong, Nguyen Viet; Berg, Matthijs van den

doi:10.1111/deve.12042

Cited by 26 publications

(25 citation statements)

References 29 publications

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“…Like many countries with large rural populations, landholding is an important form of property ownership in Vietnam. Most notably, a person who holds land use rights can use them as collateral, increasing their access to credit, which can then in turn reduce poverty rates (Nguyen 2008;Swain, Sanh, and Tuan 2008;Lensink and Pham 2012;Van den Berg 2014).…”

Section: Benefits Of Joint Land Titling In Vietnam Contextmentioning

confidence: 99%

Benefits of Joint Land Titling in Vietnam

Buchhave¹,

Nguyen²,

Nguyen³

et al. 2020

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The findings, interpretations, and conclusions expressed in this report are entirely those of the authors and should not be attributed in any manner to the World Bank, or its affiliated organizations, or to members of its board of executive directors or the countries they represent. The World Bank does not guarantee the accuracy of the data included in this publication and accepts no responsibility whatsoever for any consequence of their use.

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Section: Benefits Of Joint Land Titling In Vietnam Contextmentioning

confidence: 99%

Benefits of Joint Land Titling in Vietnam

Buchhave¹,

Nguyen²,

Nguyen³

et al. 2020

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“…Recent literature on informal and formal debt has paid much attention to households, e.g. (Nguyen & Berg, 2014), but little attention to individual investors. Also, the bulk of literature focuses on the relationship between risk tolerance and investment decisions (Dorn & Huberman, 2005;Grable & Lytton, 2001), but no research highlights the link between risk tolerance, stock investment horizons, and debt decisions.…”

Section: Introductionmentioning

confidence: 99%

“…(i) Informal debt is viewed as the amount investors borrow from informal lenders, and appears common in developing countries, e.g. Vietnam (Nguyen & Berg, 2014). Informal lenders are families, relatives, friends, landlords, or moneylenders (Nguyen & Berg, 2014).…”

Section: Introductionmentioning

confidence: 99%

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Risk tolerance, investment horizons and debt decisions

2019

El Sawah, S. (Ed.) MODSIM2019, 23rd International Congress on Modelling and Simulation.

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Formal and informal debt play an important role in investors' choices. The literature on investors' use of debt is, however, limited. In particular, the impact of risk tolerance and investment horizons on debt decisions has been unexplored. Vietnam is uniquely useful as informal borrowing is common in Vietnamese culture. Using data of 420 individual investors, we find a direct impact of (i) risk tolerance and short horizons on financial leverage, (ii) preference for short-term over long-term stock investment (SHOLO) on investment risk tolerance and informal debt, and (iii) long horizons on informal debt. SHOLO indirectly linked investment risk tolerance and informal debt. Investment risk tolerance linked SHOLO to financial leverage. These results are robust after controlling for demographics and using additional techniques. The implications are that individual investors should consider the degree of risk tolerance when making decisions on investment horizons and borrowings because the higher the levels of risk tolerance, the higher is the preference for a short trading horizon, and the higher the preference for financial leverage. Both the preference for short-term over long-term stock investment and long horizons cause risk-tolerant investors to use high informal debt. Additionally, investors' attention needs to be drawn to the fact that if their stock investment fails, all lenders may be severely affected.

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“…Numerous studies have examined the contribution of various factors to household welfare in Vietnam. In general, these studies have often examined the role of distinguishing household characteristics or assets (land, migration, access to credit, nonfarm participation) (Nguyen & Daniel, 2012;Nguyen & Marrit, 2014;Nguyen & Tran, 2013;Pfau & Giang, 2009;Ravallion & Van de Walle, 2008) and community characteristics (infrastructure, natural and geographic conditions) (Bui, Dungey, Nguyen, & Pham, 2014;Tran, Nguyen, Van, & Nguyen, 2015) in improving household welfare. Public governance can have a significant influence on the living standard of local people (Attride, 2002;Sáez, 2013) and, in Vietnam, ensuring good governance is considered a prerequisite for reducing poverty and improving household welfare (Jairo, Nguyen, Tran, & Phung, 2015).…”

Section: Introductionmentioning

confidence: 99%

Heterogeneous impacts of provincial governance on household welfare in Vietnam

Tran

Doan

et al. 2018

Int J Soc Welfare

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This study investigated the role of provincial governance in the growth of per capita income of Vietnamese households, using a balanced panel data set for the period 2012–2014. Although we found no evidence for the influence of provincial governance when a linear fixed‐effect regression estimator was used, the results from a fixed‐effect quantile regression estimator revealed that provincial governance has a positive effect on all groups (but not the poorest) and that the effect tends to be greater for better‐off households. In addition, we found that wage employment plays a larger role in the income growth of poorer households, whereas returns on education are greater for richer households. The findings suggest that a mean regression approach that looks only a t the role of explanatory variables on mean household welfare, and does not consider differences in the distribution of household welfare, may miss some heterogeneity that is of interest to policymakers. Key Practitioner Message: • Using a quantile regression approach has allowed the current study to provide new insight into the role of household‐related factors in household welfare. • Finding shows that good governance tends to provide greater benefits to richer households than to other groups in the population.

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Informal Credit, Usury, or Support? A Case Study forVietnam

Cited by 26 publications

References 29 publications

Benefits of Joint Land Titling in Vietnam

Benefits of Joint Land Titling in Vietnam

Risk tolerance, investment horizons and debt decisions

Heterogeneous impacts of provincial governance on household welfare in Vietnam

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