The Economic Effects of COVID-19 and Credit Constraints: Evidence from the Cooperatives in Vietnam

35 Pages Posted: 26 Apr 2022

See all articles by Thu hang Nguyen

Thu hang Nguyen

Foreign Trade University (FTU)

Tuan Anh Luong

De Montfort University - Faculty of Business and Law

Date Written: March 20, 2022

Abstract

[enter Abstract Body]In this paper, we investigate the credit constraints of Vietnamese cooperatives during the COVID-19 pandemic. Our main source of data is from a cooperative-level survey designed to access impact of COVID-19 outbreak on cooperative performance, combined with research of United Nation Development Programme (UNDP) and Vietnam Cooperative Alliance (VCA) in 2020. We find that smaller and under-performing cooperatives are more vulnerable as they faced enormous credit constraints. It calls for more government support to this vulnerable group of cooperatives. Especially, the credit policy design to support for cooperatives should depend on the scale and performance of Cooperatives during the pandemic to assure the vertical equality.

Keywords: COVID-19; credit constraint; cooperatives

JEL Classification: P13, Q13, Q14

Suggested Citation

Nguyen, Thu hang and Luong, Tuan Anh, The Economic Effects of COVID-19 and Credit Constraints: Evidence from the Cooperatives in Vietnam (March 20, 2022). Available at SSRN: https://ssrn.com/abstract=4091830 or http://dx.doi.org/10.2139/ssrn.4091830

Thu hang Nguyen

Foreign Trade University (FTU) ( email )

91 Chua Lang St
Dong Da District
Hanoi, Hochiminh city 10000
Vietnam

Tuan Anh Luong (Contact Author)

De Montfort University - Faculty of Business and Law ( email )

United Kingdom

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