Local Financial Development and Household Welfare: Microevidence from Thai Households

Gloede, Oliver; Rungruxsirivorn, Ornsiri

doi:10.2139/ssrn.2170122

Cited by 7 publications

(14 citation statements)

References 37 publications

(1 reference statement)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Following Bernd Hardeweg and Hermann Waibel, a household includes the household head and all persons who live in the household for at least 180 days per year (2009). All these persons were defined as nucleus household members (Gloede and Rungruxsirivorn ).…”

Section: Data Study Area Empirical Framework and Methodologymentioning

confidence: 99%

Self‐Employment and Its Influence on the Vulnerability to Poverty of Households in Rural Vietnam—A Panel Data Analysis

Sohns

Diez²

2017

Geographical Review

View full text Add to dashboard Cite

The following paper analyses whether becoming self‐employed can help to reduce the vulnerability to poverty of rural households. We use data collected during four survey waves in three rural provinces in Vietnam to calculate region‐specific logistic panel regressions. The results show that becoming self‐employed increases the likelihood of poor households escaping poverty, but only if they are located in a regional economic environment characterized by an advanced stage of structural change, good infrastructural conditions, and proximity to markets. In less well‐developed regions, becoming self‐employed is not sufficient to increase the probability of poor households escaping poverty. What matters more is that self‐employment is driven by opportunity and not by necessity. However, even opportunity‐driven self‐employment does not guarantee a reduction of vulnerability to poverty in all regional settings and for all household types. Especially, regional overspecialization in cash‐crop production and inequality in access to assets have to be taken into account. In times of declining commodity prices, self‐employment entails a risk of business failure in regions that are overspecialized in cash‐crop production. For households whose initial investment is high and whose endowment with social and educational assets is low, this can result in increased vulnerability to poverty.

show abstract

Section: Data Study Area Empirical Framework and Methodologymentioning

confidence: 99%

Self‐Employment and Its Influence on the Vulnerability to Poverty of Households in Rural Vietnam—A Panel Data Analysis

Sohns

Diez²

2017

Geographical Review

View full text Add to dashboard Cite

show abstract

“…The subject of debt and poverty is prevalent in microfinance studies. For example, studies have examined the impact of microcredit on welfare (Khandker, 1998;Morduch, 1998;Akotey and Adjasi, 2016) and the impact of access to welfare via its effects on consumption smoothing (Bae et al, 2012;Gloede and Rungruxsirivorn, 2013;Hacamo, 2014). At a micro level, the relationship between debt and poverty is embedded in the measure of over-indebtedness used, where a household is defined over-indebted if debt service payments forces the household to income that is below the poverty threshold (Russell et al, 2011;D'Alessio and Lezzi, 2013;Ntsalaze and Ikhide, 2016).…”

Section: Introductionmentioning

confidence: 99%

The threshold effects of household indebtedness on multidimensional poverty

Ntsalaze

Ikhide

2017

IJSE

View full text Add to dashboard Cite

DeclarationBy submitting this dissertation electronically, I declare that the entirety of the work contained therein is my own, original work, that I am the sole author thereof (save to the extent explicitly otherwise stated), that reproduction and publication thereof by Stellenbosch University will not infringe any third party rights and that I have not previously in its entirety or in part submitted it for obtaining any qualification.This dissertation includes two published and one accepted but not yet published original papers in peer-reviewed international journals. The fourth paper representing chapter eight is ready for submission for peer review. The development and writing of the papers (published and unpublished) were the principal responsibility of myself and, for each of the cases where this is not the case, a declaration is included in the dissertation indicating the nature and extent of the contributions of co-authors. AbstractGlobal household indebtedness has reached unprecedented levels over the past few decades.The household sector has had to cope with significant losses in income and wealth as well as the burden of debt service since the beginning of the financial crisis. Research focus on this phenomenon, together with its social implications, has grown. This study uses the National Income Dynamics Study (NIDS) data to empirically investigate the effects of household debt on multidimensional poverty. This was achieved through four independent research papers meant to address different angles of the subject. Chapter 5 provides a snapshot of the prevalence of over-indebtedness, using various international indicators and the National Credit Regulator (NCR) indicator, and describes which households are over-indebted. A total of eight percent of South African households are overindebted, and 61.4 percent of those households are found in the lowest income category (R0 -R2 000), spending more than 45 percent of their household income on debt repayments, which is beyond levels that are considered sustainable. The alarming revelation is that, according to the unsecured debt indicator, 15.2 percent of households are over-indebted, while 11 percent of households are driven below the relative income poverty line after making debt repayments. Stellenbosch University https://scholar.sun.ac.za 3The racial distribution indicates that households headed by Africans are overrepresented (79%).Most over-indebted households are found amongst those who own their places of residence (78.6%), do not receive government grants (71.7%), are male (53.8%), and have an unemployed household head (53.5%).Chapter 6 examines the presence of thresholds in the debt-poverty nexus at micro level, i.e. the tipping point above which debt is associated with more multidimensional poverty. By applying the Generalised Additive Model (GAM) using regression splines, the study finds the existence of critical tipping points between household debt service-to-income ratio and multidimensional poverty along with other explanatory variables (age...

show abstract

“…In our regression model, we examine the impact of preferential loans on household income as the main determinant of the welfare of households. Oliver Gloede and Ornsiri Rungruxsirivorn (2013) study the relationship between financial development and welfare focusing on three dimensions of household welfare: vulnerability to poverty, investment, and consumption smoothing. Our results suggest that access to preferential loans improved household income.…”

Section: Discussionmentioning

confidence: 99%

“…First, a household needs to apply for a loan. However, some households might already anticipate some credit constraints and, therefore, may give up applying, although they need a loan and could use it productively (Gloede and Rungruxsirivorn 2013). Second, lenders have the power to decide whether to grant the loan, and in what amount.…”

mentioning

confidence: 99%

Access to Preferential Loans for Poverty Reduction and Rural Development: Evidence from Vietnam

Nguyen

Passel

et al. 2018

Journal of Economic Issues

View full text Add to dashboard Cite

Preferential loans play an important role in the process of reducing poverty in developing countries. Considering the data set from the 2010 Vietnam Household Living Standards Survey, we aim to examine the influential factors in probability of households getting access to preferential loans. Additionally, we analyze the determinants of household income in association with the loans by applying a quintile regression model. Our results show that ethnicity-related factors have the largest marginal effect on the access to preferential loans. The results from the quantile regression model demonstrate that, at the lower quantiles of household income, the debt factor has deeper impact on the borrowing group.

show abstract

Local Financial Development and Household Welfare: Microevidence from Thai Households

Cited by 7 publications

References 37 publications

Self‐Employment and Its Influence on the Vulnerability to Poverty of Households in Rural Vietnam—A Panel Data Analysis

Self‐Employment and Its Influence on the Vulnerability to Poverty of Households in Rural Vietnam—A Panel Data Analysis

The threshold effects of household indebtedness on multidimensional poverty

Access to Preferential Loans for Poverty Reduction and Rural Development: Evidence from Vietnam

Contact Info

Product

Resources

About