The Impacts of Financial Development on Economic Activities in Vietnam: Evidence From Household Cross-Section Data

Abstract:This paper analyses the impacts of financial development on economic activities of Vietnamese households by using 1,685 households from the Vietnam Living Standard Survey conducted in 2004. It is shown that financial development has a positive effect on household income through improving the level of savings and investment, and productivity and reducing the problem of asymmetric information. Moreover, financial development plays a positive role in household economic welfare.