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This paper investigates the contributions of Village Funds participation to creating of homebased business through phones at household level. This paper proposes a bivariate probit model of the joint determination of two binary choice variables, whether households have created home-based business in 2010 and whether households increased number of phones or spend more for phone charges. The results show that the Village Fund has contributed to household expenditures for phone and number of phones. Moreover, households with more number of phones and phone charge expenditures are more likely to have home-based business creation in 2010.

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