Gender inequality in access formal credit in Vietnam’s rural household

nder inequality in access to formal credit in particular, such as “Sexual analysis. shape and propose policies to enhance the advancement of women and gender equality in Vietnam ”; "Assessing the gender situation in Vietnam"; Nguyen Quynh Hoa (2015); Pham Bao Quoc; Nguyen Thi Bup (2016); Tran Ai Ket; Huynh Trung Thoi (2013). Studies conducted in Vietnam also show that: If approached in the form of macroeconomics, the factors that affect gender inequality in access to production resources of HOUSEHOLD FACILITIES include: ( a) formal institutional factors; (b) informal institutional factors; (c) market; (d) household; 1.1.3. The contributions and research gaps of the studies were reviewed Theoretical foundations, solid criteria for assessing the real situation of gender inequality according to each aspect such as gender equality in education, gender equality in income, gender equality in the land ... ; The main cause of gender inequality in these aspects is the existence of gender prejudice that is a view of respect for men and women; Factors that lead to gender inequality are: (a) household head factors such as gender of the head of household, age, education level of head of household ... (b) factors belonging to household : number of household members, percentage of dependents, geographic location of the household ....; (c) other factors ... General measures to overcome gender inequality in the following aspects: (a) Completing, supplementing and amending the legal system; (b) change gender stereotypes; (c) develop incentive programs for women. 1.2. Research direction of the thesis 1.2.1. Research objectives of the thesis Overall objectives Analysis of the real situation of gender inequality in access to formal credit of households in rural Vietnam in two approaches: macro and micro approaches provide some recommendations to reduce the situation analysis of gender equality in the access formal credit in the rural Vietnam. 5 Detail objectives’: (i) Interpret the theoretical basis for gender inequality, gender inequality in access to formal credit; (ii) Analyze the factors affecting gender inequality in access to formal credit in households in rural Vietnam according to the macro approach; (iii) Analyze the factors affecting gender inequality in accessing formal credit in households in rural Vietnam according to the micro approach. (iv) Proposing some solutions and recommendations suitable to the current situation of Vietnam in order to reduce gender inequality in access to formal credit of households in rural Vietnam; 1.2.2. Subject and scope of the thesis research The object of the dissertation's study is: gender inequality in accessing formal credit in households in rural Vietnam, specifically the rights and opportunities in the process of approaching formal credit in In rural Vietnam, male heads of households and female heads of households. The scope of the thesis research - About space: The dissertation research on the whole country of Vietnam - In terms of time: The thesis analyzes and assesses the real situation of gender inequality in access to formal credit in households in Vietnam according to secondary numbers and household survey data. - Regarding the content: The thesis studies two main contents: (i) gender inequality in accessing formal credit in the macroeconomic approach and (ii) gender inequality in the approach of formal credit follow the micro approach. 1.2.3. Research approach to the topic follows the macro and micro approaches Macro approach, the thesis will use information through policy research on credit and gender equality in Vietnam, analysis of secondary documents, 6 analysis of influencing factors through the reality of real factors. Vietnam; Micro approach, the thesis will use quantitative models to evaluate the impact of factors on gender equality in the access to formal credit through household survey data. The micro-approach allows for a better understanding of macro policy issues while providing evidence for macro-analysis assessments. 1.2.4. Analytical framework of the thesis The thesis topic is based on the following analytical framework: Figure 1. 1: Analytical framework of the thesis Source: Author construction 1.2.6. Data sources (i) Magazines, books, newspapers, reports of FAO, UNDP, ...; (ii) VARHS Datasets 2016 1.2.7. Research Methods The methods used in the thesis are comparative method; Methods of analyzing and evaluating policy documents; Methods of descriptive statistical analysis. According to previous studies, this thesis topic uses the T-test overall Formal institutions Informal insitutions Market Household Gender discrimin ation Observe factors Unobserved Factors gender inequality in access to formal credit Qualitati ve analysis Quantitative analysis: Logit, OLS, Oaxaca - Blinder models 7 average test to test the hypothesis of the equality of 2 overall averages based on 2 independent samples drawn from 2 population. this. Quantitative methods and models used in the study: The thesis uses logit model to identify the determinants of the factors affecting the access to formal credit of households in rural Vietnam. and the multivariate regression model to analyze and evaluate the factors that influence the amount of formal credit borrowed. Finally, the thesis uses Oaxaca-Blinder tissue (Oaxaca-Blinder decomposition) to compare the difference in the sex of the head of household with the credit line being borrowed. CHAPTER 2 RATIONALE FOR GENDER INEQUALITY IN THE FORMAL CREDIT ACCESS OF RURAL HOUSEHOLDS IN RURAL AREAS 2.1. Access to formal credit of rural households 2.1.1. Official credit and gender characteristics in access to formal credit Two basic concepts used in the thesis include: (i) The concept of formal credit: is a form of legal credit operating under the permission of the state (ii) The concept of access formal credit: Credit access is possible in using credit and gaining benefits from using credit. Gender characteristics in access to formal credit T: Women have more restrictions than men in accessing credit, especially formal credit; The credit line that women have is lower than men; The costs of women to get formal credit are higher than for men; Women often have to accept higher formal credit rates than men. 8 2.1.2. Rural households in access to formal credit This thesis uses the household concept of the Civil Code 2005: Household is a group of people who are related to marriage, descent and nurture. According to the provisions of the Civil Code, a household is the subject of civil relations when the members of a family have common property for common economic activities in the relationship of land use, in production activities. agriculture, forestry, fishery and in a number of other production and business sectors prescribed by law. Households are classified into 4 types: (a) Single-family households (01 person); (b) Nuclear households; (c) Extended households; (d) Mixed households The process of access to credit by rural households Figure 2.2: Credit access process of rural households Source: Ferede 2012 Household There is need for loans There is no need for a loan Do not require a loan because you find yourself ineligible Loan request denied Borrowed less than recommended Borrowed as suggested Limited access to formal credit Unrestricted access to formal credit 9 2.2. Gender inequality in access to formal credit for rural households and its influencing factors 2.2.1. Gender inequality and gender inequality in access to formal credit for rural households Derived from the concept of gender inequality, the concept of access to credit. The thesis introduces the concept of gender inequality in access to credit as follows the gender inequality in access to credit is the fact that men and women have no equal rights / opportunities in using credit production process Indicators reflecting gender inequality in access to formal credit by rural households (i) ability to obtain formal credit (ii) Official credit size (Major credit value) wake up loan) 2.2.2. The impact of inequality in access to formal credit for rural household economic development Gender inequality in access to formal credit is one of the reasons for the increase in poverty rates of rural female-headed households inequality Gender inequalities in access to formal credit do Limited access to business production by women-headed households in rural areas with gender inequality in access to formal credit is one of the underlying causes of limited improvement. Technological advancement of agricultural inputs including seed, fertilizer, feed, pest management, etc. of rural households Gender inequality in access to formal credit is one of the reasons for the decline in agricultural productivity of rural female-headed households. 2.2.3 Factors affecting gender inequality in access to formal credit for rural households 10 Factors affecting gender inequality in access to formal credit by rural households include: (i) Formal institutions (ii) Informal social institutions (iii) (iv) Unofficial social institutions. 2.3. The role of the state and stakeholders in reducing gender inequalities in accessing formal credit for rural households 2.3.1. The role of the state in reducing gender inequalities in accessing formal credit for rural households The state created a legal system to create "rules of play" for entities involved in economic relations. In the context of gender inequality in access to formal credit by rural households, the state will create the most equitable "game rules" for rural households, irrespective of the head of the household. male or female, creating conditions for rural household households, regardless of gender, the head of household to participate in formal credit relationship. Planning and planning work, to set goals and establish the means to achieve the set goals to reduce and eventually eliminate gender inequalities in accessing formal credit; Policies regulating macroeconomics, especially fiscal and monetary policies. These policies ensure gender equality in access to formal credit for rural households; Using the State physical forces to supplement the market (the most important of which is the national reserve types); Providing services and public goods; public administration; use of supporting tools such as information, trade promotion, production services to reduce gender inequalities in accessing formal credit; 2.3.2. The role of other stakeholders in reducing gender inequalities in accessing formal credit for rural households Credit institutions The role of credit institutions in reducing gender inequality is divided into two main views: 11 Viewpoint one, according to Berger, M., (1989) [58]; Besley, T., (1995) [55] Diagne, A. and Zeller, M., (2001) [79]: Official credit institutions play an important role in reducing gender inequality in the future. access to official credit. Because credit institutions are places where households can access formal credit In contrast to view two, some other scholars Goetz, A.M. and Gupta, R.S., (1996) [84]; Momsen, J., (2008) [93] argue that credit institutions are business units, and they are not responsible for reducing gender inequalities in accessing mainstream credit and reducing inequality. Gender equality in access to formal credit is the responsibility of the government Community Studies on gender in general and gender inequalities in access to formal credit generally believe that the community plays an important role in reducing gender inequalities in accessing formal credit. Communities organize activities such as arts, competitions, etc. to reduce gender prejudice in the community, reduce gender inequality and eventually eliminate gender inequality. Family The family is the first educational institution of each person, the household plays a fundamental role in creating the human personality. Therefore, family education is one of the leading factors in eliminating gender in general and gender inequality in accessing formal credit in particular. 2.4. Experience of several countries in the world on reducing gender inequality in accessing formal credit of rural households and lessons for Vietnam 2.4.1. Experience of some countries in the world on reducing gender inequalities in accessing formal credit of rural households Based on the experience of some countries such as Ethopia, China, Norway, Finland, Sweden, New Zealand, Bangladesh, Pakistan, Nigeria, and 12 Tazinia on reducing gender inequalities in accessing formal credit of households. In rural areas, the thesis summarizes some experiences that can be applied in Vietnam as follows: - Developing monitoring stages and supervision apparatus during the construction process to implement gender equality - Integrating gender equality issues into development strategy programs and legal documents - Strengthen propaganda activities to reduce gender stereotypes about the role of men and women in society, eliminate obsolete ideas that cause gender prejudice - Strengthen sanctions on violations of legal policies on gender equality - Develop a number of specific policies to help women have favorable access to production resources and access to credit -Implement a lot of data collection and promote gender-related research - Experience in reducing gender inequality in access to formal credit by the African Economic Commission 2.4.2. Some lessons learned for Vietnam from the experience of reducing gender inequality in accessing credit officially of some countries in the world By studying experiences of reducing gender inequalities in accessing formal credit of some countries in the world, the author draws 7 lessons for Vietnam as follows: - Developing monitoring stages and supervision apparatus during the construction process to implement gender equality - Integrating gender equality issues into development strategy programs and legal documents - Strengthen propaganda activities to reduce gender stereotypes about the role of men and women in society, eliminate obsolete ideas that cause gender prejudice 13 - Strengthen sanctions on violations of legal policies on gender equality - Develop a number of specific policies to help women have favorable access to production resources and access to credit - Conducting data collection and promoting gender-related research - Process of implementing gender inequality in access to formal credit CHAPTER 3 CURRENT SITUATION OF GENDER EQUALITY IN ACCESS TO OFFICIAL CREDIT APPROACH OF FAMILY HOUSEHOLDS IN RURAL VIETNAM 3.1. General overview of the situation of gender inequality in access to formal credit of rural households in Vietnam 3.1.1. Situation of gender inequality in Vietnam through indicators Gender inequality is comprised of many aspects, different content and aspects, which are closely related to each other. Therefore, in order to have an in-depth look at gender inequality in access to credit, the thesis first provides a general status of gender inequality in Vietnam through general indicators and basic aspects. Table 3.1: Indicators for gender inequality assessment in Vietnam Index/Year 2010 2011 2012 2013 2014 2015 2016 2017 GII 0,330 0,330 0,328 0,326 0,323 0,323 0,305 0,304 GDI 0,992 1,002 1,006 1,008 1,009 1,011 1,009 1,005 HDI 0,654 0,664 0,670 0,675 0,678 0,684 0,689 0,694 Chênh lệch GDI và HDI 0,338 0,338 0,336 0,333 0,331 0,327 0,32 0,311 Source: Human develop report database 14 3.1.2. General overview of the situation of gender inequality in access to formal credit of rural households in Vietnam (through macro data) According to the statistical method, gender inequality in access to formal credit is expressed by two indicators: (i) Differences in the proportion of formal credit access between men and women; (ii) The ratio of the formal credit borrowed to the demand for loans between men and women. Figure 3. 1: Gender inequality in access to formal credit by households in rural Vietnam over the years 2008-2016 Source: Authors self-calculated 3.2. Analysis of the real situation of the factors affecting gender inequality in access to formal credit of households in rural Vietnam (Following macro approach) 3.2.1. Formal institutions Basically, the legal system ensures gender inequality in access to formal credit for households in rural Vietnam, ensuring equality in access to formal credit for households. in rural Vietnam. 3.2.2. Informal institutions 15 Informal institutions are one of the main causes of gender inequality in all areas of Vietnam's socio-cultural life, including gender inequality in access to formal credit. As such, informal institutions in Vietnam have a negative effect on gender inequality in access to formal credit in rural households in Vietnam. 3.2.3. Market The formal credit market is growing and improving, making it easier for people to access formal credit and there is no gender discrimination in the formal credit market, but to get credit If the loan is officially used, the borrower needs to meet the loan conditions such as collateral, the plan to use the loan, etc. These are the barriers for households whose heads are women if these households are unable to meet due to the impact of gender inequality in other areas. 3.2.4. Family Factors belonging to the household include: Educational attainment of the household head; Age and marital status of head of household; Household size. 3.3. Situation of gender inequality in access to formal credit for households in rural Vietnam (According to the micro approach) 3.3.1. Logistic model results on factors affecting formal credit access of rural households in Vietnam Table 3. 4: Logistic model results on the factors affecting the access to formal credit of rural households in Vietnam Coef. Std.Err [95% Conf. Interval] hhage 0,011 0,016 -0,02 0,043 hhgen 0,804* 0,64 -0,45 2,058 hhedu 0,123** 0,058 0,01 0,236 hhmar -2,135 0,846 -3,792 -0,478 lb 0,07*** 0,141 -0,207 0,347 dep 0,236** 0,183 -0,122 0,594 hhfarm 0,298*** 0,44 -0,565 1,161 16 lnland 0,368*** 0 0,319 0,32 collateral 0,319** 0,026 0,317 0,419 preloan 0,195*** 0,001 0,193 0,197 _cons -10.827 1.689 -14.138 -7.516 Number of obs 3.205 LR chi2(10) 4.077.8 Pseudo R2 0,936 Log likelihood -139.443 Note: Statistical significance is shown as follows: *** p <0.01, ** p <0.05, and * p <0.1 Symbol of variables is noted in Appendix 1 Source: Authors' calculations Table 3. 5: Odd ratio results on the factors affecting the access to formal credit of rural households in Vietnam Odds ratio Std.Err [95% Conf. Interval] Hhage 1,011 0,0161 0,9803 1,0436 hhgen 2,235 1,4295 0,6379 7,8296 hhedu 1,131** 0,0653 1,0098 1,2661 hhmar 0,118 0,1 0,0225 0,6203 lb 1,073*** 0,2079 0,8134 1,4145 dep 1,267** 0,2862 0,8853 1,8118 hhfarm 1,348*** 0,4298 0,5686 3,194 lnland 1,376*** 1,78E-07 1,3758 1,3768 collateral 1,445** 11,1285 1,3731 1,5211 preloan 1,216*** 54231,27 1,2131 1,2183 _cons 0,002*** 0,0000335 7,243E-07 0,0005 Number of obs 3.205 LR chi2(10) 4.077,8 Prob > chi2 0 17 Pseudo R2 0,936 Log likelihood -139.443 Note: Statistical significance is shown as follows: *** p <0.01, ** p <0.05, and * p <0.1 Source: Authors' calculations 3.3.2. Factors affecting gender inequality in the value of formal credit borrowed by rural households in Vietnam Regression model results on the factors that affect the value of formal credit borrowed by rural households in Vietnam Table 3. 6: Factors affecting the value of formal credit borrowed by rural households in Vietnam Variable Pooled sample Male head household Female head household (Model 2) (1) (Model 3) (2) (Model 4) (3) Coef SD SD Coef SD Hhgen 0,153 0,015 0,012 Hhage 0,011 0,003 0,035*** 0,004 0,018 0,008 Hhedu 0,039*** 0,011 0,114 0,013 0,028** 0,024 Hhmar 0,122 0,15 -0,148*** 0,159 0,41 0,282 Hhwage -0,153** 0,074 -0,21* 0,077 -0,097** 0,199 Hhfarm -0,27* 0,101 0,265* 0,121 -0,43* 0,198 Hhself 0,18* 0,094 -0,06 0,116 -0,37 0,242 Hhresource -0,093 0,077 0,031 0,081 -0,014 0,241 Hhchores 0,025 0,083 0,016 0,077 -0,194 0,198 lb 0,014 0,021 -0,01 0,023 -0,056 0,081 dp 0,008 0,027 -0,11 0,027 0,232 0,098 member -0,064 0,165 -0,086 0,185 0,262 0,3 credit inform -0,05 0,105 1,105*** 0,139 0,062 0,279 collateral 0,82*** 0,081 0,375*** 0,079 1,525*** 0,252 lninc 0,372*** 0,045 0,092*** 0,055 0,369* 0,1 lnland 0,088*** 0,026 -0,389 0,027 0,018* 0,063 preloan -0,257 0,571 0,115 0,297 -0,053 0,65 short 0,119 0,092 0,36** 0,116 0,074 0,248 18 mid 0,362*** 0,091 0,35* 0,11 0,35* 0,226 Long 0,276** 0,14 3,99*** 0,157 0,307* 0,329 _cons 5,07*** 0,771 800 0,737 8,164*** 1,559 Number of observations 930 0 130 Prob > F 0 0,534 0 R-Squared 0,501 0,534 Note: Statistical significance is shown as follows: *** p <0.01, ** p <0.05, and * p <0.1 Source: Authors' calculations 19 Table 3. 9: Blinder - Oaxaca decomposition factors affecting gender inequality in the value of formal credit borrowed by rural households in Vietnam A. Mean gender differential Coef Std.Err Mean gender differential 0,182*** 0,115 Mean ln[male head household of loan value] 10,062*** 0,045 Mean female [head household of loan value] 9,88*** 0,101 B. Aggregate Decompositi on Endow ment effect (1) Std.Err Male structural advantage (2) Std.Err Female structural disadvantage (3) Std.Err Unexplained (4)=(2)+(3) Std.Err Total 0,064 0,013 0,05 0,015 0,068 0,023 0,118 0,0013 Share of gender differential 35,16% 27,47% 37,37% 64,84% C. Detailed decompositio n Endow ment effect (1) Std,Err Male structural advantage (2) Std,Err Female structural disadvantage (3) Std,Err Explains (4)=(2)+(3) Std,Err % Hhage -0,105 0,035 0,051 0,241 -0,423 0,59 -0,372 0,035 -262% Hhedu 0,011** 0,017 0,007*** 0,108 0,192* 0,193 0,199 0,017 115% Hhmar 0,06 0,112 -0,006 0,252 -0,077 0,086 -0,083 0,112 -13% Hhwage - 0,036** 0,0018 0,002** 0,0005 -0,012** 0,0002 -0,01** 0,0018 -25% 20 Hhfarm -0,059* 0,026 0,053* 0,014 0,106** 0,0012 0,159** 0,026 55% Hhself -0,008* 0,0008 0,014* 0,0024 0,115* 0,054 0,129* 0,008 66% hhresource -0,014 0,012 0,01 0,033 -0,012 0,038 -0,002 0,012 -9% Hhchores -0,003 0,01 0,005 0,09 0,2 0,299 0,205 0,01 111% Lb 0,025 0,0015 -0,036 0,0014 0,091 0,002 0,055 0,015 44% Dep 0,001 0,003 -0,025 0,053 -0,281 0,136 -0,306 0,003 -168% Member -0,002 0,005 -0,044 0,239 -0,304 0,361 -0,348 0,005 -192% Credit -0,001 0,004 -0,032 0,15 -0,097 0,252 -0,129 0,004 -71% Collateral 0,084** * 0,047 0,097*** 0,039 -0,168*** 0,063 -0,071*** 0,017 7% Lninc 0,095** * 0,035 0,031*** 0,788 0,03** 1,264 0,061** 0,004 86% Lnland 0,015** * 0,0014 0,052** 0,519 0,898* 0,818 0,95** 0,0014 530% Preloan 0 0,002 -0,131 0,71 -0,203 0,426 -0,334 0,002 -184% Short 0,019 0,017 -0,002 0,061 0,012 0,072 0,01 0,017 16% Mid - 0,013** * 0,0016 -0,001*** 0,0038 0,004*** 0,0073 0,003*** 0,016 -5% Long - 0,005** * 0,008 0,005** 0,014 -0,003*** 0,032 0,002*** 0,008 -2% 21 CHAPTER 4 A NUMBER OF RECOMMENDED SOLUTIONS TO REDUCE GENDER EQUALITY IN ACCESSING OFFICIAL CREDIT OF FAMILY HOUSEHOLDS IN RURAL VIETNAM 4.1. Background and prospects for reducing gender inequalities in access to formal credit for rural households in Vietnam by 2030 4.1.1. Background and prospects of the world The First World Conference on Women, in 1975, called for the establishment of a national body for the advancement of women. By the end of the UN decade on Women (1975-1985), the 127 member states of the United Nations had established a national body for the advancement of women and so far, 165 UN countries have been established. establishing a national body for the advancement of women. International documents with legal principles on gender equality and women's advancement are increasingly recognized and implemented by many countries. Convention on eliminating all forms of discrimination against women of the United Nations (Convention on the Elimination of all Forms of Discrimination against Women, abbreviated as CEDAW) has been signed and widely ratified by 187 countries. 4.1.2. Background