Does the Village Fund Matter in Thailand?
This paper evaluates the impact of the Thailand Village and Urban Revolving Fund on household expenditure, income, and assets. The revolving fund was launched in 2001 when the Government of Thailand promised to provide a million baht (about $22,500...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090721132749 http://hdl.handle.net/10986/4202 |
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okr-10986-4202 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCESS TO CREDIT AGRICULTURAL ACTIVITIES AGRICULTURAL COOPERATIVES AGRICULTURAL INPUTS AGRICULTURAL LAND AGRICULTURE ALLOCATION OF CREDIT ANNUAL INCOME ANNUAL INTEREST RATE ANNUAL INTEREST RATES ANTI-POVERTY ASSET ACCUMULATION ASYMMETRIC INFORMATION AVERAGE EXCHANGE RATE BANKS BINDING CONSTRAINT BORROWER BORROWING BORROWING COSTS CHECKS CONSUMER CONSUMER CREDIT CONSUMER DURABLES CONSUMER EXPENDITURE CORRUPTION COST-EFFECTIVENESS CREDIBILITY CREDIT ASSOCIATIONS CREDIT MARKET CREDIT MARKETS CREDIT SCHEMES CURRENT INCOME DEBT DEPOSITS DEVELOPMENT BANK DEVELOPMENT ECONOMICS DIMINISHING RETURNS DUMMY VARIABLE DUMMY VARIABLES DURABLE DURABLE ASSETS DURABLE GOODS DURABLES EARNINGS ECONOMIC SITUATION ECONOMIC SURVEYS EDUCATIONAL LEVEL EMPLOYEE EQUATIONS EQUIPMENT EXCHANGE RATE EXPECTED VALUE EXPENDITURE EXPENDITURES FAMILIES FARM ENTERPRISE FARM ENTERPRISES FARM HOUSEHOLDS FARM INCOME FARMER FARMERS FARMING COMMUNITIES FEMALE BORROWERS FEMALE-HEADED HOUSEHOLDS FINANCIAL ASSETS FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL SYSTEMS FUNGIBLE GENDER GOVERNMENT SAVINGS GUARANTORS HEAD OF HOUSEHOLD HOLDING HOUSEHOLD CONSUMPTION HOUSEHOLD EXPENDITURE HOUSEHOLD FIXED EFFECTS HOUSEHOLD HEAD HOUSEHOLD INCOME HOUSEHOLD INCOMES HOUSEHOLD SPENDING HOUSEHOLD SURVEY HOUSEHOLD WELFARE HOUSEHOLDS INCOME EFFECT INCREASE IN INCOME INEQUALITY INFORMATIONAL ASYMMETRIES INSTRUMENT INTEREST RATE INTEREST RATES INTERNATIONAL BANK LENDERS LOAN LOAN APPLICATIONS LOAN DEFAULT LOAN SIZE LOANABLE FUNDS LOWER INTEREST RATE MANAGERIAL EFFICIENCY MAXIMUM LOAN AMOUNTS MEDICAL CARE MICRO-LENDING MICROCREDIT MICROFINANCE MINIMUM BALANCE MONOPOLY MONTHLY INCOME NET ASSETS OUTSIDE LENDERS OUTSTANDING DEBT PER CAPITA INCOME PHYSICAL ASSETS POOR POOR HOUSEHOLDS POVERTY PROGRAMS PROBABILITY PRODUCTIVITY PURCHASES QUESTIONNAIRE RATE OF INTEREST RATE OF RETURN REGIONAL DUMMIES REPAYMENT REPAYMENT OF PRINCIPAL REPAYMENT PERIODS REPAYMENTS RESEARCH ASSISTANCE RETURNS REVOLVING FUND ROTATING CREDIT RURAL RURAL AREAS RURAL BANKS RURAL BORROWERS RURAL ECONOMY RURAL FEMALE RURAL FINANCE RURAL FINANCE INSTITUTION RURAL FINANCE INSTITUTIONS RURAL FINANCIAL INSTITUTIONS RURAL HOUSEHOLDS RURAL PROVINCES SAVINGS SAVINGS BANK SAVINGS DEPOSITS SOURCE OF CREDIT SOURCES OF CREDIT SOURCES OF INCOME STATE UNIVERSITY TERMS OF LOANS URBAN AREAS URBAN DEVELOPMENT VALUABLE VILLAGE VILLAGE BANK VILLAGE ECONOMIES VILLAGE FUND VILLAGE FUNDS VILLAGES WAGE WORKING CAPITAL WORTH |
| spellingShingle |
ACCESS TO CREDIT AGRICULTURAL ACTIVITIES AGRICULTURAL COOPERATIVES AGRICULTURAL INPUTS AGRICULTURAL LAND AGRICULTURE ALLOCATION OF CREDIT ANNUAL INCOME ANNUAL INTEREST RATE ANNUAL INTEREST RATES ANTI-POVERTY ASSET ACCUMULATION ASYMMETRIC INFORMATION AVERAGE EXCHANGE RATE BANKS BINDING CONSTRAINT BORROWER BORROWING BORROWING COSTS CHECKS CONSUMER CONSUMER CREDIT CONSUMER DURABLES CONSUMER EXPENDITURE CORRUPTION COST-EFFECTIVENESS CREDIBILITY CREDIT ASSOCIATIONS CREDIT MARKET CREDIT MARKETS CREDIT SCHEMES CURRENT INCOME DEBT DEPOSITS DEVELOPMENT BANK DEVELOPMENT ECONOMICS DIMINISHING RETURNS DUMMY VARIABLE DUMMY VARIABLES DURABLE DURABLE ASSETS DURABLE GOODS DURABLES EARNINGS ECONOMIC SITUATION ECONOMIC SURVEYS EDUCATIONAL LEVEL EMPLOYEE EQUATIONS EQUIPMENT EXCHANGE RATE EXPECTED VALUE EXPENDITURE EXPENDITURES FAMILIES FARM ENTERPRISE FARM ENTERPRISES FARM HOUSEHOLDS FARM INCOME FARMER FARMERS FARMING COMMUNITIES FEMALE BORROWERS FEMALE-HEADED HOUSEHOLDS FINANCIAL ASSETS FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL SYSTEMS FUNGIBLE GENDER GOVERNMENT SAVINGS GUARANTORS HEAD OF HOUSEHOLD HOLDING HOUSEHOLD CONSUMPTION HOUSEHOLD EXPENDITURE HOUSEHOLD FIXED EFFECTS HOUSEHOLD HEAD HOUSEHOLD INCOME HOUSEHOLD INCOMES HOUSEHOLD SPENDING HOUSEHOLD SURVEY HOUSEHOLD WELFARE HOUSEHOLDS INCOME EFFECT INCREASE IN INCOME INEQUALITY INFORMATIONAL ASYMMETRIES INSTRUMENT INTEREST RATE INTEREST RATES INTERNATIONAL BANK LENDERS LOAN LOAN APPLICATIONS LOAN DEFAULT LOAN SIZE LOANABLE FUNDS LOWER INTEREST RATE MANAGERIAL EFFICIENCY MAXIMUM LOAN AMOUNTS MEDICAL CARE MICRO-LENDING MICROCREDIT MICROFINANCE MINIMUM BALANCE MONOPOLY MONTHLY INCOME NET ASSETS OUTSIDE LENDERS OUTSTANDING DEBT PER CAPITA INCOME PHYSICAL ASSETS POOR POOR HOUSEHOLDS POVERTY PROGRAMS PROBABILITY PRODUCTIVITY PURCHASES QUESTIONNAIRE RATE OF INTEREST RATE OF RETURN REGIONAL DUMMIES REPAYMENT REPAYMENT OF PRINCIPAL REPAYMENT PERIODS REPAYMENTS RESEARCH ASSISTANCE RETURNS REVOLVING FUND ROTATING CREDIT RURAL RURAL AREAS RURAL BANKS RURAL BORROWERS RURAL ECONOMY RURAL FEMALE RURAL FINANCE RURAL FINANCE INSTITUTION RURAL FINANCE INSTITUTIONS RURAL FINANCIAL INSTITUTIONS RURAL HOUSEHOLDS RURAL PROVINCES SAVINGS SAVINGS BANK SAVINGS DEPOSITS SOURCE OF CREDIT SOURCES OF CREDIT SOURCES OF INCOME STATE UNIVERSITY TERMS OF LOANS URBAN AREAS URBAN DEVELOPMENT VALUABLE VILLAGE VILLAGE BANK VILLAGE ECONOMIES VILLAGE FUND VILLAGE FUNDS VILLAGES WAGE WORKING CAPITAL WORTH Boonperm, Jirawan Haughton, Jonathan Khandker, Shahidur R. Does the Village Fund Matter in Thailand? |
| geographic_facet |
East Asia and Pacific East Asia and Pacific Southeast Asia Asia Thailand |
| relation |
Policy Research working paper ; no. WPS 5011 |
| description |
This paper evaluates the impact of the
Thailand Village and Urban Revolving Fund on household
expenditure, income, and assets. The revolving fund was
launched in 2001 when the Government of Thailand promised to
provide a million baht (about $22,500) to every village and
urban community in Thailand as working capital for
locally-run rotating credit associations. The money about
$2 billion in total was quickly disbursed to locally-run
committees in almost all of Thailand s 74,000 villages and
more than 4,500 urban (including military) communities. By
May 2005, the committees had lent a total of about $8
billion, with an average loan of $466. Using data from the
Thailand Socioeconomic Surveys of 2002 and 2004, each of
which surveys almost 35,000 households, the authors find
that the borrowers were disproportionately poor and
agricultural. A propensity score matching model finds that
Fund borrowing in 2004 was associated with, on average, 1.9
percent more income, 3.3 percent more expenditure, and about
5 percent more ownership of durable goods. These results are
broadly consistent with the results from instrumental
variables models (where the identifying instrument was the
inverse of village size), which however show a smaller
(marginal) effect. Households that borrowed both from the
revolving fund and from the Bank of Agriculture and
Agricultural Cooperatives gained substantially more in terms
of higher income than those who borrowed from either one or
the other or from neither. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Boonperm, Jirawan Haughton, Jonathan Khandker, Shahidur R. |
| author_facet |
Boonperm, Jirawan Haughton, Jonathan Khandker, Shahidur R. |
| author_sort |
Boonperm, Jirawan |
| title |
Does the Village Fund Matter in Thailand? |
| title_short |
Does the Village Fund Matter in Thailand? |
| title_full |
Does the Village Fund Matter in Thailand? |
| title_fullStr |
Does the Village Fund Matter in Thailand? |
| title_full_unstemmed |
Does the Village Fund Matter in Thailand? |
| title_sort |
does the village fund matter in thailand? |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090721132749 http://hdl.handle.net/10986/4202 |
| _version_ |
1764390386034278400 |
| spelling |
okr-10986-42022021-04-23T14:02:16Z Does the Village Fund Matter in Thailand? Boonperm, Jirawan Haughton, Jonathan Khandker, Shahidur R. ACCESS TO CREDIT AGRICULTURAL ACTIVITIES AGRICULTURAL COOPERATIVES AGRICULTURAL INPUTS AGRICULTURAL LAND AGRICULTURE ALLOCATION OF CREDIT ANNUAL INCOME ANNUAL INTEREST RATE ANNUAL INTEREST RATES ANTI-POVERTY ASSET ACCUMULATION ASYMMETRIC INFORMATION AVERAGE EXCHANGE RATE BANKS BINDING CONSTRAINT BORROWER BORROWING BORROWING COSTS CHECKS CONSUMER CONSUMER CREDIT CONSUMER DURABLES CONSUMER EXPENDITURE CORRUPTION COST-EFFECTIVENESS CREDIBILITY CREDIT ASSOCIATIONS CREDIT MARKET CREDIT MARKETS CREDIT SCHEMES CURRENT INCOME DEBT DEPOSITS DEVELOPMENT BANK DEVELOPMENT ECONOMICS DIMINISHING RETURNS DUMMY VARIABLE DUMMY VARIABLES DURABLE DURABLE ASSETS DURABLE GOODS DURABLES EARNINGS ECONOMIC SITUATION ECONOMIC SURVEYS EDUCATIONAL LEVEL EMPLOYEE EQUATIONS EQUIPMENT EXCHANGE RATE EXPECTED VALUE EXPENDITURE EXPENDITURES FAMILIES FARM ENTERPRISE FARM ENTERPRISES FARM HOUSEHOLDS FARM INCOME FARMER FARMERS FARMING COMMUNITIES FEMALE BORROWERS FEMALE-HEADED HOUSEHOLDS FINANCIAL ASSETS FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL SYSTEMS FUNGIBLE GENDER GOVERNMENT SAVINGS GUARANTORS HEAD OF HOUSEHOLD HOLDING HOUSEHOLD CONSUMPTION HOUSEHOLD EXPENDITURE HOUSEHOLD FIXED EFFECTS HOUSEHOLD HEAD HOUSEHOLD INCOME HOUSEHOLD INCOMES HOUSEHOLD SPENDING HOUSEHOLD SURVEY HOUSEHOLD WELFARE HOUSEHOLDS INCOME EFFECT INCREASE IN INCOME INEQUALITY INFORMATIONAL ASYMMETRIES INSTRUMENT INTEREST RATE INTEREST RATES INTERNATIONAL BANK LENDERS LOAN LOAN APPLICATIONS LOAN DEFAULT LOAN SIZE LOANABLE FUNDS LOWER INTEREST RATE MANAGERIAL EFFICIENCY MAXIMUM LOAN AMOUNTS MEDICAL CARE MICRO-LENDING MICROCREDIT MICROFINANCE MINIMUM BALANCE MONOPOLY MONTHLY INCOME NET ASSETS OUTSIDE LENDERS OUTSTANDING DEBT PER CAPITA INCOME PHYSICAL ASSETS POOR POOR HOUSEHOLDS POVERTY PROGRAMS PROBABILITY PRODUCTIVITY PURCHASES QUESTIONNAIRE RATE OF INTEREST RATE OF RETURN REGIONAL DUMMIES REPAYMENT REPAYMENT OF PRINCIPAL REPAYMENT PERIODS REPAYMENTS RESEARCH ASSISTANCE RETURNS REVOLVING FUND ROTATING CREDIT RURAL RURAL AREAS RURAL BANKS RURAL BORROWERS RURAL ECONOMY RURAL FEMALE RURAL FINANCE RURAL FINANCE INSTITUTION RURAL FINANCE INSTITUTIONS RURAL FINANCIAL INSTITUTIONS RURAL HOUSEHOLDS RURAL PROVINCES SAVINGS SAVINGS BANK SAVINGS DEPOSITS SOURCE OF CREDIT SOURCES OF CREDIT SOURCES OF INCOME STATE UNIVERSITY TERMS OF LOANS URBAN AREAS URBAN DEVELOPMENT VALUABLE VILLAGE VILLAGE BANK VILLAGE ECONOMIES VILLAGE FUND VILLAGE FUNDS VILLAGES WAGE WORKING CAPITAL WORTH This paper evaluates the impact of the Thailand Village and Urban Revolving Fund on household expenditure, income, and assets. The revolving fund was launched in 2001 when the Government of Thailand promised to provide a million baht (about $22,500) to every village and urban community in Thailand as working capital for locally-run rotating credit associations. The money about $2 billion in total was quickly disbursed to locally-run committees in almost all of Thailand s 74,000 villages and more than 4,500 urban (including military) communities. By May 2005, the committees had lent a total of about $8 billion, with an average loan of $466. Using data from the Thailand Socioeconomic Surveys of 2002 and 2004, each of which surveys almost 35,000 households, the authors find that the borrowers were disproportionately poor and agricultural. A propensity score matching model finds that Fund borrowing in 2004 was associated with, on average, 1.9 percent more income, 3.3 percent more expenditure, and about 5 percent more ownership of durable goods. These results are broadly consistent with the results from instrumental variables models (where the identifying instrument was the inverse of village size), which however show a smaller (marginal) effect. Households that borrowed both from the revolving fund and from the Bank of Agriculture and Agricultural Cooperatives gained substantially more in terms of higher income than those who borrowed from either one or the other or from neither. 2012-03-19T19:11:44Z 2012-03-19T19:11:44Z 2009-07-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090721132749 http://hdl.handle.net/10986/4202 English Policy Research working paper ; no. WPS 5011 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper East Asia and Pacific East Asia and Pacific Southeast Asia Asia Thailand |