(LUẬN văn THẠC sĩ) determinants of accessibility to microcredit in term of formal sector and informal sector

UNIVERSITY OF ECONOMICS, HO CHI MINH CITY VIET NAM – NETHERLANDS PROGRAMME FOR M.A PROGRAM IN DEVELOPMENT ECONOMICS DETERMINANTS OF ACCESSIBILITY TO MICROCREDIT IN TERMS OF FORMAL SECTOR AND INFORMAL SECTOR o0o TRAN THI NGOC ANH MAI Academic Supervisor: DR CAO HAO THI Dec – 2014 TIEU LUAN MOI download : skknchat@gmail.com ABSTRACT Microcredit is an emerging concept helping the poor out of poverty situation This dissertation attempts to investigate the determinants affecting the probability of participation in different types of credit sectors in terms of formal sector and informal sector Using a sample size of 1,522 households participate in credit market from The Vietnam Access to Resources Household Survey (VARHS) 2012, bivariate probit model is employed to explore the determinants of household credit demand due to the binary nature of the dependent variables Various explanatory variables include age, gender, marital_stt, edu, hhsize, income, savingamount, landsize, agriculture_act, network and location that influence probability of accessibility to different sectors of credit Furthermore, relationship between dependent variables is accounted in this research Results reveal that factors affecting formal credit participation are different from factors affecting informal credit participation Additionally, the result indicates that there is negative correlation across two sectors of credit TIEU LUAN MOI download : skknchat@gmail.com ACKNOWLEDGEMENT I would like to express my deepest thankfulness to my advisor, Dr Cao Hao Thi who spent lots of his precious time to support and guide me throughout this research and continuously led me to the right way I would also like to extend my appreciation to the teachers working on Vietnam Netherlands programme who gave great lectures and invaluable knowledge for us to complete the course I am grateful to my parents and my siblings that always encourage and support me in my study and in every aspect of life I also want to express my gratitude to my friends for sharing with me the difficulties and giving me the ideas, knowledge and materials for the study and for all the time we were at Master in Development Economics 19 TIEU LUAN MOI download : skknchat@gmail.com LIST OF FIGURES Figure 2.1 Probability of success and expected returns to borrowers Figure 2.2 Return to the bank 11 Figure 3.1 Microfinance Systems in Vietnam 22 Figure 4.1 Process of research 30 Figure 4.2 Participation in credit sector 33 LIST OF TABLES Table 2.1 Definition of Variables 18 Table 3.1 Microfinance Institutions in Vietnam 20 Table 3.2 Comparison between formal and informal lenders 28 Table 4.1 Summary of Participation in different credit sectors 32 Table 4.2 Conditional and Unconditional Credit Participation Probabilities 33 Table 4.3 Summary statistics 34 Table 5.1 Determinants of accessibility to formal and informal credit sector 38 Table 5.2 Marginal effects for conditional probability of formal sector participation 44 Table 5.3 Marginal effects for conditional probability of informal sector participation 46 TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector (LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector TABLE OF CONTENTS CHAPTER 1: INTRODUCTION 1.1 Problem statement 1.2 Research objective 1.3 Research questions 1.4 Research Structure CHAPTER 2: LITERATURE REVIEW 2.1 Concept of credit 2.2 Theory of demand for credit 2.3 Credit rationing theory 2.4 Determinants of participation in microcredit programs 11 CHAPTER 3: OVERVIEW OF MICROFINANCE SYSTEM 19 The history of Microfinance 19 3.2 The role of government in microfinance: 21 3.3 Overview of credit market in Vietnam 22 3.3.1 The formal credit market 23 3.3.2 The semi-formal credit market: 26 3.3.3 The informal credit market 26 CHAPTER 4: RESEARCH METHODOLOGY 30 4.1 Research process 30 4.2 The data 31 4.3 Data Analysis Method 35 CHAPTER 5: RESULTS AND DISCUSSION 38 5.1 Estimation of determinants of microcredit participation 38 5.2 Estimation of conditional marginal effects 44 CHAPTER 6: CONCLUSION 48 6.1 Research Findings 48 6.2 Policy implications 49 6.3 Limitations 50 REFERENCES 52 APPENDIX 57 TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector (LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector CHAPTER 1: INTRODUCTION 1.1 Problem statement There are about 1.22 billion people (21 percent of population) in the world living on less than $1.25 a day in 2010 (World Bank) Focusing towards poverty reduction and finding ways to improve living condition have taken a lot of attention of public policies in the world The rate of poverty in Vietnam decreases remarkably in recent years According to annual report shown by GSO, the poverty rate declined from 15.5 percent in 2006, to 13.4 percent in 2008, to 10.7 percent in 2010 In a report of GSO in 2010, it also revealed that poverty level in rural area (13.2 percent) is much higher compared to that in urban area (5.1 percent) How to distribute the benefits of economics growth, especially to rural area is one of the challenges remained Therefore, rural economy deserves more attention and support to reduce inequality between rural and urban area According to McCarty (2001) and Pham & Lensink (2002), lack of ability to obtain the fund for the purpose of working capital and investment is one of the reasons among other things that lead to poverty in developing countries Providing a channel to ease the credit constraints for the poor rural household is the primary object in poverty alleviation strategy of developing countries, including Vietnam Farmers need an instrument such as credit to enhance productivity and promote standard of standard of living because of their seasonal activities and uncertainty they are facing (Ololade & Ologunju, 2013) Accessing to microcredit is recognized as a potentially effective tool out of under poverty line situation and improve living standards (ADB, 2000a; Morduch and Haley, 2002; Khandker, 2003) Agricultural credit plays an important role in sustainable achievement in any country in the world Microfinance industry has been known in many decades in developing countries, and its role was further attended with rapid growth worldwide when Mohammad Yunus who pioneered the principle of microfinance and microcredit TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector (LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector received Nobel Peace prize in 2006 (Tra Pham and Robert Lensink, 2007) And a variety of previous researches demonstrated the position of microfinance in poverty reduction by focusing on the effect on household welfare The demand for rural credit has increased sharply due to the decollectivization of agriculture launched in Vietnam in the year 1986 Hence, the spread of microfinance with amendment of regulations on banking operation in Vietnam plays an important component in fighting again poverty over the last decades Vietnam has introduced several of microcredit programs via a lot of channels such as banks, credit funds, money lenders and advance input providers to supply credit for a variety of clients Despite the importance of credit to the poor, the poor family that lacks ability to access to adequate financial service leads to the fact that they not have prospects for increasing their productivity and living standard And the fact that commercial banks have no interest in allocating credit to the poor because of their lack of viable collateral Because of these reasons, governments in developing countries have set up credit programs that aim at improving the process of rural household access to formal credit during the past four decades (Diagne, 1999) However, the lending mechanisms as well as the nature of the credit market which are highly regulated by government intervention such as controls of interest rates and credit quota allocation not function well Similarly, Robinson (2001) and Gonzalez Vega (2003) also indicated that most of microfinance institutions have been not sustainable in developing countries Credit subsidized interest rate provided by “Agricultural development banks” which established by commercial banks to extend credit to rural household not considered creditworthy However, majority of these credit programs have failed to reach their targets both to be sustainable credit providers and serve the poor (Adams, Graham, and von Pischke 1984; Adams and Vogel 1986; Braverman and Guasch 1986) Risk management and transaction costs associated with Asymmetric information are the most problematic features facing by lenders and borrowers (Pham & Lensinnk, TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector Nwaru, J C, Essien, U A, & Onuoha, R E (2011) Determinants of informal credit demand and supply among food crop farmers in AkwaIbom state, Nigeria Okten, C, & Osili, U O (2003) Contributions in heterogeneous communities: evidence from Indonesia Okunade, E O (2007) Accessibility of agricultural credit and inputs to women farmers of Isoya Rural development project Okurut, F N (2006) Access to credit by the poor in South Africa: Evidence from Household Survey Data 1995 and 2000 Ololade R.A., & Olagunju F.I (2013) Determinants of Access to Credit among Rural Farmers in Oyo Owuor George (2001) Is Micro-Finance Achieving Its Goal Among Smallholder Farmers in Africa? Empirical Evidence from Kenya Using Propensity Score Matching Pham, T T., & Lensink, R (2007) Household borrowing in Vietnam: A comparative study of default risks of informal, formal and semi-formal credit Phan, K D (2012) An Empirical Analysis of Accessibility and Impact of Microcredit: the Rural Credit Market in the Mekong River Delta, Vietnam Robinson, M S (2001) The Microfinance Revolution Schreiner, M, & G Nagarajan (1998) Predicting Creditworthiness with Publicly Observable Characteristics: Evidence from ASCRAs and RoSCAs in the Gambia Soman, D., & Cheema A (2002) The effect of credit on spending decisions: The role of the credit limit and credibility Stiglitz, J E., & Weiss, A (1981) Credit rationing in markets with imperfect information Tang, S., Guan, Z., & Zin, S (2010) Formal and Informal Credit Markets and Rural Credit Demand in China Vaessen, J (2001) Accessibility of rural credit in Northern Nicaragua: the importance of networks of information and recommendation 55 TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector (LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector Yehuala, S (2008) Determinants of smallholder farmers access to formal credit: the case of Metema Woreda, north Gondar, Ethiopia Zeller, D A., & Sharma, M (2000) to Credit Empirical Mesearements of Households’ Access and Credit Constraints in Developing Countries:Methodological Issues and Evidence Zeller, M (1994) Determinants Of Credit Rationing - A Study of Informal Lenders And Formal Credit Groups In Madagascar Zhao, X., & N.Harris, M (2004) Demand for Marijuana, Alcohol and Tobacco:Participation, Levels of Consumption and Cross-equation Correlations 56 TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector (LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector APPENDIX Appendix 1: Statistics variables summarize Variable Obs Mean hhsize age material edu gender 1522 1522 1522 1522 1522 5.754928 47.13272 8554534 8.339685 8390276 location formal semi_formal informal network 1522 1522 1522 1522 1522 marital_stt agricultur~s income landsize savingamount 1522 1522 1522 1522 1522 Std Dev Min Max 3.423013 12.3758 3517587 3.226634 3676263 18 25 93 13 7943495 6760841 0854139 4638633 5611038 404309 4681222 2795885 4988563 4964154 0 0 1 1 8554534 6708279 88.22605 10.99167 22.41842 3517587 470067 157.5349 16.30339 58.27375 0 2.005 035 1 4500 181.2 820 57 TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector (LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector Appendix 2: Biprobit model result Seemingly unrelated bivariate probit Number of obs Wald chi2(22) Prob > chi2 Log likelihood = -1626.0435 Coef Std Err z P>|z| = = = 1522 244.13 0.0000 [95% Conf Interval] formal age gender marital_stt edu hhsize income savingamount landsize agriculture_activities network location _cons 0075118 151997 0680732 0289365 0185429 -.0008037 0025958 0076207 0551399 -.0449324 8583475 -1.161806 0030486 1284223 1387999 0110286 0107979 0002655 0009093 0025141 0783177 0745282 082791 2348165 2.46 1.18 0.49 2.62 1.72 -3.03 2.85 3.03 0.70 -0.60 10.37 -4.95 0.014 0.237 0.624 0.009 0.086 0.002 0.004 0.002 0.481 0.547 0.000 0.000 0015367 -.0997061 -.2039696 0073209 -.0026207 -.001324 0008136 0026931 -.0983599 -.1910049 6960802 -1.622038 0134869 4037001 340116 0505521 0397064 -.0002834 0043779 0125483 2086397 1011402 1.020615 -.7015737 age gender marital_stt edu hhsize income savingamount landsize agriculture_activities network location _cons -.012557 -.2400197 4704264 0063396 -.0544963 0006474 -.0022606 -.0024476 -.0047116 1535791 -.33206 744359 0029225 1285607 1384631 0105358 0104913 0002615 0007772 0022311 0754129 071354 0821836 2261336 -4.30 -1.87 3.40 0.60 -5.19 2.48 -2.91 -1.10 -0.06 2.15 -4.04 3.29 0.000 0.062 0.001 0.547 0.000 0.013 0.004 0.273 0.950 0.031 0.000 0.001 -.018285 -.4919939 1990436 -.0143102 -.0750589 0001349 -.0037839 -.0068204 -.1525181 0137279 -.493137 3011452 -.0068289 0119546 7418092 0269893 -.0339337 0011599 -.0007373 0019252 1430949 2934304 -.1709831 1.187573 /athrho -1.137302 0615582 -18.48 0.000 -1.257954 -1.01665 rho -.8135035 0208197 -.850499 -.7684985 informal Likelihood-ratio test of rho=0: chi2(1) = 480.84 Prob > chi2 = 0.0000 58 TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector (LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector Appendix 3: The marginal effects for Pr(formal=1, informal=1) mfx compute, predict(p11) Marginal effects after biprobit y = Pr(formal=1,informal=1) (predict, p11) = 18358534 variable age gender* marita~t* edu hhsize income saving~t landsize agricu~s* network* location* dy/dx Std Err -.0019257 -.0335559 1322072 0089765 -.0117955 -2.56e-06 -.0000426 0011303 0120594 0348592 1144395 00079 03532 02412 00286 00279 00007 00023 00068 01975 01875 01625 z -2.43 -0.95 5.48 3.14 -4.23 -0.04 -0.19 1.67 0.61 1.86 7.04 P>|z| [ 95% C.I ] 0.015 0.342 0.000 0.002 0.000 0.970 0.851 0.095 0.541 0.063 0.000 -.003478 -.000373 -.102772 03566 084942 179473 003379 014574 -.017266 -.006325 -.000138 000133 -.000488 000402 -.000198 002459 -.026649 050768 -.001897 071615 082583 146296 X 47.1327 839028 855453 8.33968 5.75493 88.226 22.4184 10.9917 670828 561104 79435 (*) dy/dx is for discrete change of dummy variable from to Appendix 4: The marginal effects for Pr(formal=1, informal=0) mfx compute, predict(p10) Marginal effects after biprobit y = Pr(formal=1,informal=0) (predict, p10) = 5045949 variable age gender* marita~t* edu hhsize income saving~t landsize agricu~s* network* location* dy/dx 0045826 0885767 -.1078536 0012581 0183539 -.0002817 0009607 0015651 0075307 -.0507289 2090319 Std Err .00109 04739 04918 00394 00392 0001 0003 00083 02821 02664 02819 z 4.20 1.87 -2.19 0.32 4.68 -2.89 3.25 1.89 0.27 -1.90 7.42 P>|z| [ 95% C.I ] 0.000 0.062 0.028 0.750 0.000 0.004 0.001 0.059 0.789 0.057 0.000 002444 006721 -.004315 181468 -.204247 -.01146 -.006467 008983 010675 026033 -.000472 -.000091 000381 00154 -.000061 003191 -.047753 062814 -.102937 001479 153788 264276 X 47.1327 839028 855453 8.33968 5.75493 88.226 22.4184 10.9917 670828 561104 79435 (*) dy/dx is for discrete change of dummy variable from to 59 TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector (LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector Appendix 5: The marginal effects for Pr(formal=0, informal=1) mfx compute, predict(p01) Marginal effects after biprobit y = Pr(formal=0,informal=1) (predict, p01) = 27324684 variable age gender* marita~t* edu hhsize income saving~t landsize agricu~s* network* location* dy/dx -.0030544 -.061934 0469426 -.0064622 -.009818 0002593 -.000854 -.002101 -.0139282 0259274 -.2462988 Std Err .00093 04262 03907 00337 00331 00008 00027 00074 02414 02259 02885 z -3.29 -1.45 1.20 -1.92 -2.96 3.18 -3.19 -2.84 -0.58 1.15 -8.54 P>|z| [ 95% C.I 0.001 0.146 0.230 0.055 0.003 0.001 0.001 0.004 0.564 0.251 0.000 -.004876 -.145462 -.029635 -.013065 -.01631 000099 -.001379 -.00355 -.061251 -.018345 -.302848 ] -.001233 021594 12352 00014 -.003326 000419 -.000329 -.000652 033394 0702 -.189749 X 47.1327 839028 855453 8.33968 5.75493 88.226 22.4184 10.9917 670828 561104 79435 (*) dy/dx is for discrete change of dummy variable from to Appendix 6: The marginal effects for Pr(formal=0, informal=0) mfx compute, predict(p00) Marginal effects after biprobit y = Pr(formal=0,informal=0) (predict, p00) = 03857292 variable age gender* marita~t* edu hhsize income saving~t landsize agricu~s* network* location* dy/dx 0003976 0069132 -.0712963 -.0037724 0032595 0000249 -.0000641 -.0005944 -.0056619 -.0100577 -.0771727 Std Err .0003 01143 02445 00112 00109 00003 00009 00026 00787 00745 01421 z 1.32 0.61 -2.92 -3.38 2.98 0.96 -0.71 -2.26 -0.72 -1.35 -5.43 P>|z| [ 95% C.I ] 0.188 0.545 0.004 0.001 0.003 0.339 0.475 0.024 0.472 0.177 0.000 -.000194 000989 -.015482 029309 -.119209 -.023384 -.005961 -.001584 001114 005405 -.000026 000076 -.00024 000112 -.00111 -.000079 -.021077 009754 -.024654 004538 -.105026 -.04932 X 47.1327 839028 855453 8.33968 5.75493 88.226 22.4184 10.9917 670828 561104 79435 (*) dy/dx is for discrete change of dummy variable from to 60 TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector (LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector Appendix 7: The marginal effects for the marginal probability of outcome Pr(formal=1) mfx compute, predict(pmarg1) Marginal effects after biprobit y = Pr(formal=1) (predict, pmarg1) = 68818024 variable age gender* marita~t* edu hhsize income saving~t landsize agricu~s* network* location* dy/dx 0026569 0550208 0243537 0102346 0065585 -.0002843 0009181 0026954 0195901 -.0158697 3234715 Std Err .00108 04746 0502 0039 00382 00009 00032 00089 02795 02628 03116 z 2.47 1.16 0.49 2.63 1.72 -3.03 2.86 3.04 0.70 -0.60 10.38 P>|z| [ 95% C.I 0.014 0.246 0.628 0.009 0.086 0.002 0.004 0.002 0.483 0.546 0.000 000544 -.038009 -.074042 002593 -.000921 -.000468 000289 000956 -.035183 -.067379 262403 ] 004769 14805 122749 017876 014038 -.0001 001547 004435 074363 035639 38454 X 47.1327 839028 855453 8.33968 5.75493 88.226 22.4184 10.9917 670828 561104 79435 (*) dy/dx is for discrete change of dummy variable from to Appendix 8: The marginal effects for the marginal probability of outcome Pr(informal=1) mfx compute, predict(pmarg2) Marginal effects after biprobit y = Pr(informal=1) (predict, pmarg2) = 45683218 variable age gender* marita~t* edu hhsize income saving~t landsize agricu~s* network* location* dy/dx -.0049801 -.0954899 1791499 0025143 -.0216135 0002568 -.0008966 -.0009707 -.0018688 0607866 -.1318592 Std Err .00116 05101 04944 00418 00416 0001 00031 00088 02991 02815 03237 z -4.30 -1.87 3.62 0.60 -5.20 2.48 -2.91 -1.10 -0.06 2.16 -4.07 P>|z| [ 95% C.I 0.000 0.061 0.000 0.547 0.000 0.013 0.004 0.273 0.950 0.031 0.000 -.007252 -.195475 082256 -.005675 -.029762 000053 -.001501 -.002705 -.0605 005609 -.195303 ] -.002709 004496 276044 010704 -.013465 00046 -.000293 000763 056762 115965 -.068415 X 47.1327 839028 855453 8.33968 5.75493 88.226 22.4184 10.9917 670828 561104 79435 (*) dy/dx is for discrete change of dummy variable from to 61 TIEU LUAN MOI download : skknchat@gmail.com (LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector (LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector(LUAN.van.THAC.si).determinants.of.accessibility.to.microcredit.in.term.of.formal.sector.and.informal.sector