External publications

Local financial development and household welfare in Vietnam: evidence from a panel survey

Tran, Viet T. / Yabibal M. Walle / Helmut Herwartz
External Publications (2018)

in: Journal of Development Studies 54 (4) 619-640

DOI: https://doi.org/10.1080/00220388.2017.1385772
Information

We examine the impact of local financial development on household welfare in Vietnam. We employ household-level panel data for the periods 2007, 2008, 2010 and 2013 covering three provinces and measure local financial development at the district, sub-district and village levels. To account for potential endogeneity that could emanate from the fact that local economic development could spur local financial development, we employ a recently suggested method of identification through heteroscedasticity. Our results show that local financial development has a significantly positive effect on household annual income, consumption and consumption smoothing.