The Effect of Access to Nayobai Bank’s Credit on Poverty Alleviation in Northern of the Lao PDR

Abstract

This study, entitled “The Effect of Access to Nayobai Bank’s Credit on Poverty Alleviation in Northern of the Lao PDR”, aims to examine the overall access to credit from Nayobai Bank and its impact on poverty reduction in the northern region, with a case study of Oudomxay province. Primary data were collected from a sample of 392 respondents. The relationship between access to credit and household poverty levels was analyzed using Ordinary Least Squares (OLS) regression models, with data processed through STATA software.The results of the multidimensional poverty assessment indicate that most households continue to experience various deprivations. Approximately 70% of households are classified as poor, with an average deprivation score of 41.98% across three dimensions: education, health, and living standards. The overall poverty level in the studied region was found to be 29.23%. The analysis further revealed that access to credit, education levels, and farmer occupation are significant negative effects on household poverty level, whereas gender and status are positively correlated with household poverty levels. However, family size and age were not found to have statistically significant effects on household poverty level