his study investigated the determinants of accessibility to formal credit and its effects on living standards from 2010 to 2012 based on dataset of Vietnam Households Living Standards Survey (VHLSS) from the General Statistics Office of Vietnam and support of Eview 7 program. | International Journal of Financial Research Vol. 6, No. 2; 2015 Determinant of Access to Rural Credit and Its Effect on Living Standard: Case Study about Poor Households in Northwest, Vietnam (Note 1) Tran Thi Thanh Tu1, Nguyen Quoc Viet2 & Hoang Huu Loi1 1 Faculty of Finance and Banking, VNU University of Economics and Buisness, Vietnam 2 Faculty of Development Economics, VNU University of Economics and Business, Vietnam Correspondence: Dr. Tran Thi Thanh Tu, Associate Professor, Faculty of Finance and Banking, VNU University of Economics and Business, Vietnam. E-mail: tuttt@ Received: March 31, 2015 Accepted: April 16, 2015 doi: Online Published: April 19, 2015 URL: Abstract This study investigated the determinants of accessibility to formal credit and its effects on living standards from 2010 to 2012 based on dataset of Vietnam Households Living Standards Survey (VHLSS) from the General Statistics Office of Vietnam and support of Eview 7 program. It is evident that average of education level, land area per capita, owned residential area affect is key factors of accessing to credit; meanwhile, average of education level affects the probability to require and amount of credit. Interestingly, we find that poor recognize by local and rate of non-farm income is positive factor of accessibility on formal credit; in addition, interest rate has statistically significant, implying has impact on loan amount. In otherwise, by using DID (Note 2) approach and OLS (Note 3) model for analyzing panel dataset in 2010, 2012; we find that have only impact of accessing to loan on education expense in short-term. Next, the results also indicate that enhance education level and rate of non-agriculture income lead to achievement of living standards. Keywords: rural credit, poverty reduction, poor household, Northwest of Vietnam 1. Introduction Economic development for ethnic
