Determinants of Access to Credit by the Small Business at Binh Thuy District, Can Tho City, Vietnam

  • Vuong Quoc Duy Can Tho University, Vietnam
  • Duong   Dao Dat Long An University of Economics and Industry, Vietnam
  • Do Thi Anh Thi   Long An University of Economics and Industry, Vietnam
  • Doan   Pham Nguyen Vu Long An University of Economics and Industry, Vietnam
  • Bui Xuan Minh Long An University of Economics and Industry, Vietnam

Abstract

This paper investigates the “Determinants of households’ business access to bank credit in Binh Thuy district, Can Tho city” which is performed by using the method of directly interviewing 240 business households in 8 wards in Binh Thuy district. By using the Logistics models, the finding show that the access to credit by small business households are significantly affected by education level of householders, capital of household businesses, collateral and income of businesses household. In addition, based on given results, possible solutions to improve the access to credit for business households at Binh Thuy district, Can Tho city have been considered.

References

1. Bali Swain, R. (2002). Credit Rationing in rural India. Journal of Economic Development, Vol. 27, No. 2, pp. 1 - 20.
2. Campbell, J. & Mankiw, G. (1989). Consumption income and interest rates: Reinterpreting the time series evidence. O. Blanchard and S Fisher (eds) NBER Macroeconomic Annual. MIT Press, Cambridge.
3. Diagne, A. (1999). Determinants of access to and participation in formal and informal credit markets in Malawi. International Food Policy Research Institute, FCND, Discussion Paper No. 67, Washington D.C.
4. Felipe, J and Adams, F. (2005). “The Theory of Production”: The Estimation of the Cobb-Douglas Function": A Retrospective View. Eastern Econometric Journal, 31(3).
5. Johnston Jr., Don, & Jonathan Morduch (2007). The unbanked: Evidence from Indonesia. New York: Financial Access Initiative.
6. Jorgenson, D. (1967). The Theory of Investment Behavior. Business (Vol. I, pp. 129-188).
7. Marge Sults, (2003). Banking sector development and credit constrained households in Estonia.
8. Mayada M. Baydas, Richard Meyer & Nelson Aguilera-Alfred, (1994). Discrimination against women in formal credit markets: Reality or rhetoric. World Development, Vol. 22, No. 7, pp 1073-1082.
9. Modigliani, Franco and Miller, M. H. (1958). The American economic. The American Economic Reveiw, 48(3), 261-297.
10. Modigliani, Franco. (1966). The Life Cycle Haypothesis of Saving, the Demand for Wealth and the Supply of Capital, 33(2).
11. Morduch, J. (1995). Income Smoothing and Consumption Smoothing. The Journal of Economic Perspective, 9(3), 103-114.
12. Mullei A. (2003), Growth and Transformation of Small Manufacturing Firms in Africa: Insights from Ghana, Kenya and Zimbabwe, African Center for Economic Growth, Nairobi.
13. Navajas, Sergio, & Luis Tejerina, (2006). Microfinance in Latin American and the Caribbean: How big is the market? Washington, D.C.: Inter-American Development Bank.
14. Soman, D., & Cheema, A. (2002). The Effect of Credit on Spending Decisions: The Role of the Credit Limit and Credibility. Marketing Science, 21(1), 32-53. doi:10.1287/mksc.21.1.32.155
15. Zeller, M. (1994). Determinants of credit rationing: A study of informal lenders and formal groups in Madagascar. World Development, Vol. 22, No. 12, pp 1895–1907.
16. Zellner, Kmenta, A and Dreze, J. (1966). Specification and Estimation of Cobb-Douglas Production Function Models. Econometrica, 34(4), 784-795.
Published
2019-09-06
How to Cite
DUY, Vuong Quoc et al. Determinants of Access to Credit by the Small Business at Binh Thuy District, Can Tho City, Vietnam. International Journal of Social Sciences, Humanities and Education, [S.l.], v. 3, n. 3, p. 206-216, sep. 2019. ISSN 2521-0041. Available at: <http://www.ijsshe.com/index.php/ijsshe/article/view/126>. Date accessed: 21 sep. 2019.
Section
Articles