ENHANCING FORMAL CREDIT ACCESSIBILITY OF PIG PRODUCTION HOUSEHOLDS IN THAI BINH PROVINCE, VIETNAM

This paper investigates the factors affecting the access of pig production households to formal credit in Thai Binh province. The total invested capital in agriculture and rural development in the past years increased continuously. Besides, scale of pig production in Thai Binh was expanded, and poverty levels have reduced significantly over the last years. If it is assumed that access to credit is a vehicle for poverty alleviation, it is necessary to assess how households decide on borrowing. This paper identifies the determinants of formal credit accessibility and the amount that is borrowed by using Logistic regression model and Standard multiple regression model. Data used in this paper was obtained from a survey of 100 pig production households Thai Binh, conducted from February to May 2014. The results indicate that distance to the nearest credit source, household annual income, participant to extension package program, experience in formal credit use, pig cage area and monthly expense affect the probability to ask for and amount of formal credit.