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Exploring Differences in Rural Household Debt between Thailand and Vietnam: Economic Environment versus Household Characteristics
About the Speaker

Dr Bezawit Beyene Chichaibelu, Senior Researcher, Center for Development Research, University of Bonn

About the Webinar

Rural financial markets have grown rapidly in Asian emerging market economies, thus contributing to economic development and the reduction of poverty. At the same time, however, the level of indebtedness of rural households has increased, making households more vulnerable to shocks. This study aims to explore cross-country differences in credit market participation, level of household debt holding and over-indebtedness between rural households in Thailand and Vietnam. Using a unique rural household survey data from “Vulnerability in Southeast Asia” project, it first identifies socio-economic determinants of such market outcomes for rural households in Thailand and Vietnam. It decomposes differences into a part that arise due to configuration of household characteristics or a part that arise due to differences in economic environments using three decomposition methods. Significant differences are observed in credit market participation rates and level of debt holding and indebtedness between rural households in Thailand and Vietnam which are mainly explained by differences in credit market conditions between the two countries.

Mar 15, 2021 04:00 PM in Singapore

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