Tóm tắt
Purpose – This paper examines credit composition and income inequality reduction in Vietnam. In particular, the authors focus on the distinction between policy and commercial credits and investigate whether these two types of credit adversely affect on income inequality. The authors also examine whether the educational level and institutional quality condition the impact of policy credit on income inequality. Design/methodology/approach – The authors use the primary data set, which contains a panel of 60 provinces collected from the General Statistics Office of Vietnam from 2002 to 2016. The authors employ the generalized method of moments to solve the endogenous problem. Findings – The authors show that while commercial credit increases income inequality, policy credit reduces income inequality in Vietnam. In addition, we provide evidence that the institutional quality and educational level condition the impact of policy credit on income inequality. Based on the findings, the paper implies that it was not the size of the private credit but its composition that mattered in reducing income inequality due to the asymmetric effects of different types of credit. Practical implication – The government should focus on credit for the poor by helping them to exit poverty through investing in human capital, health and micro enterprises activities. Originality/value – This is the first study that examines the links between the two components of credit and income inequality as well as the constraints of the links. The authors argue that analyzing the separate effects of commercial and policy credits is more important for explaining the role of credit in income inequality than the size of total credit.
Chủ đề
Commercial credit, Policy credit, Income inequality, Vietnam
Nhà xuất bản
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Aghion, P. and Bolton, P. (1997), “A theory of trick-down growth and development”, Review of Economic Studies, Vol. 64 No. 2, pp. 151-172. Ang, J. (2010), “Finance and inequality: the case of India”, Southern Economic Journal, Vol. 76 No. 3, pp. 738-761. Asian Development Bank (2015), Key Indicators for Asia and the Pacific 2015, Asian Development Bank. Banerjee, A. and Newman, A.F. (1993), “Occupational choice and the process of development”, Journal of Political Economy, Vol. 101 No. 2, pp. 274-98. Beck, T. (2011), “The role of finance in economic...See More
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