This study examines the impact of microcredit on household self-employment profits in Vietnam. For two indicators of credit participation a dichotomous participation dummy and the accumulated amount of microcredit received per household the analysis reveals a positive effect on household profits. The analysis also reveals that an instrumental variable method within a fixed-effects framework can control for the possible endogeneity of credit and thereby identify the true effect of credit.
- self-employment profits
- poverty reduction