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http://dx.doi.org/10.13106/jafeb.2021.vol8.no12.0051

The Impact of Access to Cooperatives on Households' Income: An Empirical Study in Vietnam  

VUONG, Quoc Duy (Department of Finance and Banking, College of Economics, Can Tho University)
TRAN, Viet Thanh Truc (Department of Finance and Banking, College of Economics, Can Tho University)
DANG, Quang Vang (Faculty of Economics, Ho Chi Minh University of Technology and Education)
MAI, Van Nam (Graduate School, Can Tho University)
Publication Information
The Journal of Asian Finance, Economics and Business / v.8, no.12, 2021 , pp. 51-61 More about this Journal
Abstract
If one is looking for an organization that will be responsive to community needs, stimulate economic growth, and raise people's income, cooperatives should be an obvious choice (Calkins & Ngo, 2005; Larocque et al., 2002). This paper investigates whether the households' income is affected by the access to cooperatives for the case of Phong Dien district, Can Tho city of Vietnam. Data used are directly collected from 250 households that are both participating (120 observations) and not participating in the cooperatives in Truong Long, Tan Thoi, Nhon Ai and Nhon Nghia communes. By using the Probit model, the findings show that there are three statistically significant factors affecting the ability of farm households to participate in the cooperatives at the 1 percent level including land area, distance to market center, and education level. In addition, the PSM model analysis suggests that the average income of cooperative members is significantly higher than that of non-members, about 40.880 million VND/year at the significance level of 1 percent. The empirical results imply that being a cooperative member is a significant contributory factor toward an increase in household income. Based on the research findings, several recommendations to improve the households' income are proposed.
Keywords
Household Income; Cooperative; PSM Model;
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