Credit constraint and household income: a quantile analysis approach

Using a quantile regression approach, this study contributes to the literature by analyzing the first time of role of credit constraints on household income in Vietnam. Using the latest version of Vietnam household living standard survey in 2016, our results show a negative impact of credit constraint on income of household when using OLS. Whereas using a quantile approach, a negative impact of credit constraint on household income is still recorded, the linkage shows a decreasing trend of the impact of credit constraint on income through various points of income distribution. These results might suggest that access to household microfinance can be a way to help Vietnam improve in their welfares.