Analysis of factors influencing the size of loan of households in ‘new rural’ areas

Abstract

The paper to analyzes factors influencing the size of loan of the rural households in Vietnam. Using Tobit regression model and survey data of households’ credit during the ‘new rural’ formation process across 8 provinces in Vietnam, research findings revealed that: (i) education level of household’s head, income and saving level, land area for    production, and borrowing frequency exerted a positive influence on the amount of houselold loan; (ii) the highest education level attained by household’s members, main occupation of the household, and regional characteristics negatively affected the loan size. Besides, we found no evidence of the association between the loan size and the variables such as number of household’s members, gender of household’s head, land area, and ownership status of land.