- 권한신청
- P-ISSN1738-3110
- E-ISSN2093-7717
- SCOPUS, ESCI
The Determinants of Distribution of Credit: Evidence from Vietnam
The Determinants of Distribution of Credit: Evidence from Vietnam
NGUYEN, Tue Dang (School of Economics and Management, Hanoi University of Science and Technology)
PHAM, Giang Hoang (Quantitative Analysis Center (QA Global Co.))
Abstract
Purpose: The issue of access to credit for private enterprises has been given an increased amount of attention given their crucial role in fueling economic growth. Vietnamese small and medium-sized businesses, however, face many obstacles in accessing financing for profitable investment opportunities, with up to 70% unable to access or obtain bank loans. This paper aims to address the factors affecting the credit accessibility of Vietnamese enterprises, and provide further insights of this issue under the new context of Basel II. Research design, data and methodology: We adopt a pooled sections approach to construct a sample of 155 firm observations before and after the implementation of Basel II accord in Vietnam and employing binary logistic regression and interaction terms for data analysis. Results: We find that firm characteristics (export participation, female ownership) and proxies for bank-borrower relationship (deposit, overdraft facility) have significant and positive effects on firm's access to credit. Notably, the sign of interaction coefficient shows that the implementation of Basel II tends to benefit small-sized firms in terms of credit accessibility. Conclusions: The finding further emphasizes the important role of relationship lending in Vietnam's credit market, which is even more critical for small firms when Basel II is universally applied as the new banking standards in the coming years.
- keywords
- access to credit, distribution of credit, small and medium firms, firm characteristics, bank-borrower relationship, Basel II
참고문헌
Abdullah, M. A., & Manan, S. K. A. (2011). Small and Medium Enterprises and Their Financing Patterns: Evidence from Malaysia. Journal of Economic Cooperation & Development, 32(2), 1-18.
Ai, C., & Norton, E. C. (2003). Interaction terms in logit and probit models. Economics letters, 80(1), 123-129.
Altman, E. I., & Sabato, G. (2005). Effects of the New Basel Capital Accord on Bank Capital Requirements for SMEs. Journal of Financial Services Research, 28(1–3), 15–42. https://doi.org/10.1007/s10693-005-4355-5
Asiedu, E., Kalonda-Kanyama, I., Ndikumana, L., & Nti-Addae, A.(2013). Access to Credit by Firms in Sub-Saharan Africa: How Relevant is Gender? American Economic Review, 103(3), 293–297. https://doi.org/10.1257/aer.103.3.293
Beck, T., Degryse, H., De Haas, R., & van Horen, N. (2018). When arm‘s length is too far: Relationship banking over the credit cycle. Journal of Financial Economics, 127(1), 174–196. https://doi.org/10.1016/j.jfineco.2017.11.007
Beck, T., & Demirguc-Kunt, A. (2006). Small and medium-size enterprises: Access to finance as a growth constraint. Journal of Banking & Finance, 30(11), 2931–2943.https://doi.org/10.1016/j.jbankfin.2006.05.009
Beck, T., Demirguc-Kunt, A., Laeven, L., & Maksimovic, V.(2006). The determinants of financing obstacles. Journal of International Money and Finance, 25(6), 932-952.
Beck, T., Demirgüç-Kunt, A., & Maksimovic, V. (2008). Financing patterns around the world: Are small firms different? Journal of Financial Economics, 89(3), 467–487.https://doi.org/10.1016/j.jfineco.2007.10.005
Bellucci, A., Borisov, A., & Zazzaro, A. (2010). Does gender matter in bank–firm relationships? Evidence from small business lending. Journal of Banking & Finance, 34(12),2968–2984. https://doi.org/10.1016/j.jbankfin.2010.07.008
Berger, A. N. (2006). Potential Competitive Effects of Basel II on Banks in SME Credit Markets in the United States. Journal of Financial Services Research, 29(1), 5–36. https://doi.org/10.1007/s10693-005-5106-3
Berger, A. N., & Frame, W. S. (2007). Small Business Credit Scoring and Credit Availability. Journal of Small Business Management, 45(1), 5–22. https://doi.org/10.1111/j.1540-627X.2007.00195.
Berger, A. N., & Udell, G. F. (2002). Small business credit availability and relationship lending: The importance of bank organisational structure. The Economic Journal, 112(477), F32-F53.
Bigsten, A., Collier, P., Dercon, S., Fafchamps, M., Gauthier, B.,Gunning, J. W., & Zeufack, A. (2003). Credit Constraints in Manufacturing Enterprises in Africa. Journal of African Economies, 12(1), 104–125. https://doi.org/10.1093/jae/12.1.104
Byiers, B., Rand, J., Tarp, F., & Bentzen, J. (2010). Credit demand in Mozambican manufacturing. Journal of International Development, 22(1), 37–55. https://doi.org/10.1002/jid.1558
Chaudhuri, K., & Cherical, M. M. (2012). Credit rationing in rural credit markets of India. Applied Economics, 44(7), 803–812.https://doi.org/10.1080/00036846.2010.524627
Dietsch, M., & Petey, J. (2004). Should SME exposures be treated as retail or corporate exposures? A comparative analysis of default probabilities and asset correlations in French and German SMEs. Journal of Banking & Finance, 28(4), 773–788. https://doi.org/10.1016/j.jbankfin.2003.10.006
Drakos, K., & Giannakopoulos, N. (2011). On the determinants of credit rationing: Firm-level evidence from transition countries. Journal of International Money and Finance, 30(8), 1773–1790. https://doi.org/10.1016/j.jimonfin.2011.09.004
Elsas, R. (2005). Empirical determinants of relationship lending. Journal of Financial Intermediation, 14(1), 32-57.
Fatoki, O., & Asah, F. (2011). The impact of firm and entrepreneurial characteristics on access to debt finance by SMEs in King Williams' town, South Africa. International Journal of Business and Management, 6(8), 170-179.
Ganesh-Kumar, A., Sen, K., & Vaidya, R. (2001). Outward Orientation, Investment and Finance Constraints: A Study of Indian Firms. The Journal of Development Studies, 37(4),133–149. https://doi.org/10.1080/00220380412331322071
Jacobson, T., Lindé, J., & Roszbach, K. (2005). Credit Risk Versus Capital Requirements under Basel II: Are SME Loans and Retail Credit Really Different? Journal of Financial Services Research, 28(1), 43–75. https://doi.org/10.1007/s10693-005-4356-4
Kira, A. R. (2013). Determinants of Financing Constraints in East African Countries' SMEs. International Journal of Business and Management, 8(8), 49-68. https://doi.org/10.5539/ijbm.v8n8p49
Kira, A. R., & He, Z. (2012). The Impact of Firm Characteristics in Access of Financing by Small and Medium-sized Enterprises in Tanzania. International Journal of Business and Management, 7(24), 108-119. https://doi.org/10.5539/ijbm.v7n24p108
Li, Y., & Rama, M. (2015). Firm dynamics, productivity growth, and job creation in developing countries: The role of microand small enterprises. The World Bank Research Observer, 30(1), 3-38.
Le, P. N. M. (2012). What Determines the Access to Credit by SMEs? A Case Study in Vietnam. Journal of Management Research, 4(4), 90–115. https://doi.org/10.5296/jmr.v4i4.1838
Malesky, E. J., & Taussig, M. (2009). Where Is Credit Due? Legal Institutions, Connections, and the Efficiency of Bank Lending in Vietnam. The Journal of Law, Economics, and Organization, 25(2), 535–578. https://doi.org/10.1093/jleo/ewn011
Manole, V., & Spatareanu, M. (2010). Exporting, capital investment and financial constraints. Review of World Economics, 146(1), 23–37. https://doi.org/10.1007/s10290-009-0040-3
Muravyev, A., Talavera, O., & Schäfer, D. (2009). Entrepreneurs' gender and financial constraints: Evidence from international data. Journal of Comparative Economics, 37(2), 270–286.https://doi.org/10.1016/j.jce.2008.12.001
Myers, S. C., & Majluf, N. S. (1984). Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics, 13(2), 187–221. https://doi.org/10.1016/0304-405X(84)90023-0
Nguyen, L. T., Su, J.-J., & Sharma, P. (2019). SME credit constraints in Asia‘s rising economic star: Fresh empirical evidence from Vietnam. Applied Economics, 51(29), 3170–3183. https://doi.org/10.1080/00036846.2019.1569196
Nguyen, N., & Luu, N. (2013, February 15). Determinants of Financing Pattern and Access to Formal -Informal Credit: The Case of Small and Medium Sized Enterprises in Viet Nam. Journal of Management Research, 5(2), 240-259.
Nguyen, T. D. K., & Ramachandran, N. (2006). Capital Structure in Small and Medium-sized Enterprises: The Case of Vietnam. ASEAN Economic Bulletin, 23(2), 192–211.
Oliner, S. D., & Rudebusch, G. D. (1992). Sources of the Financing Hierarchy for Business Investment. The Review of Economics and Statistics, 74(4), 643-654. https://doi.org/10.2307/2109378
Petersen, M. A., & Rajan, R. G. (1994). The Benefits of Lending Relationships: Evidence from Small Business Data. The Journal of Finance, 49(1), 3–37.https://doi.org/10.1111/j.1540-6261.1994.tb04418.x
Rand, J. (2007). Credit Constraints and Determinants of the Cost of Capital in Vietnamese Manufacturing. Small Business Economics, 29(1), 1–13. https://doi.org/10.1007/s11187-005-1161-2
Saurina, J., & Trucharte, C. (2004). The Impact of Basel II on Lending to Small- and Medium-Sized Firms: A Regulatory Policy Assessment Based on Spanish Credit Register Data. Journal of Financial Services Research, 26(2), 121–144. https://doi.org/10.1023/B:FINA.0000037542.16864.11
Sundén, A. E., & Surette, B. J. (1998). Gender Differences in the Allocation of Assets in Retirement Savings Plans. The American Economic Review, 88(2), 207–211.
Tambunan, T. (2008). SME development, economic growth, and government intervention in a developing country: The Indonesian story. Journal of International Entrepreneurship, 6(4), 147–167. https://doi.org/10.1007/s10843-008-0025-7
- 다운로드 수
- 조회수
- 0KCI 피인용수
- 0WOS 피인용수