Use of Financial Instruments In Rural Thailand

Abstract

This paper presents a summary of Önancial access in rural Thailand. We Önd that household use an important variety of Önancial instruments and at the same time, there is a lot of heterogeneity at the province level. Additionally, a credit program implemented in 2002, increased the number of household with access to formal borrowing and decrease the importance of informal borrowing. During the whole period we observe a high correlation between wealth and Önancial access, interestingly, household that borrow informality are poorer than the household that do not borrow at all and household that borrow from commercial banks are the richest.