THE EFFECTS OF POLICY CREDIT PROGRAM ON INCOME OF KHMER ETHNIC HOUSEHOLDS IN SOC TRANG PROVINCE

Abstract

The research target analyzes the effects of the policy credit program on income changes among Khmer ethnic households in Soc Trang province. The income data were collected from 227 poor Khmer households, of which 119 households participated in the program and 108 unparticipated households. Probit model and the Prospensity Score Matching (PSM) method are used to evaluate the impact of the program. The result shows that the ability of participation in the policy credit program is attributed to some factors, such as the level of education, marriage, social relations of household heads, households have production land, the number of loan times and households with informal loans. In addition, the result shows that households which assessed to the policy credit program have a higher amount of income than the rest group of household, by a range of 7,362,000 VND/year to 8,223,000 VND/year. It is so concluded that the policy credit program has a positive contribution to an improvement of the total income to poor Khmer households.