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 Volume 7, Issue 9 (September 2020), Pages: 68-74


 Original Research Paper

 Title: Policy credit and income inequality reduction in Vietnam: An empirical analysis

 Author(s): Quoc Hoi Le 1, *, Bich Ngoc Nguyen 2, Lan Huong Tran 1


 1Faculty of Economics, National Economics University, Hanoi, Vietnam
 2School of Trade and International Economics, National Economics University, Hanoi, Vietnam

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 * Corresponding Author. 

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This paper examines the role of policy credit on income inequality reduction in Vietnam. We also examine whether the impact of policy credit on income inequality is conditioned by the educational level and institutional quality. The primary data set contains a panel of 60 provinces collected from the General Statistics Office of Vietnam from 2002 to 2016. We employ the Generalized Method of Moment (GMM) to solve the endogenous problem. The empirical findings show that policy credit contributes to reducing income inequality in Vietnam. In addition, we provide evidence that the institutional quality and educational level condition the impact of policy credit on income inequality. Based on the findings, the paper implies that the government needs to coordinate with the relevant functional agencies to promote the propagation and dissemination of preferential lending programs for the poor, ethnic minority groups. 

 © 2020 The Authors. Published by IASE.

 This is an open access article under the CC BY-NC-ND license (

 Keywords: Policy credit, Income inequality, Vietnam

 Article History: Received 5 March 2020, Received in revised form 2 June 2020, Accepted 3 June 2020


No Acknowledgment.

 Compliance with ethical standards

 Conflict of interest: The authors declare that they have no conflict of interest.


 Le QH, Nguyen BN, and Tran LH (2020). Policy credit and income inequality reduction in Vietnam: An empirical analysis. International Journal of Advanced and Applied Sciences, 7(9): 68-74

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