Cover Image

Estimating the Long-Run Impact of Microcredit Programs on Household Income and Net Worth

This paper investigates whether the utilization of microcredit programs has a significant impact on the income and net worth of the participants. Several micro finance institutes are optimistic on the beneficial effects of microcredit programs. Oth...

Full description

Bibliographic Details
Main Authors: Woutersen, Tiemen, Khandker, Shahidur R.
Language:English
en_US
Published: World Bank Group, Washington, DC 2014
Subjects:
ACCESS TO FINANCE
BIDS
CONTROL GROUPS
CREDIT ACCESS
CREDIT PROGRAMS
CREDIT SCORING
DUMMY VARIABLE
ECONOMIC DEVELOPMENT
EXCLUSION
FAMILIES
FINANCIAL STUDIES
GENDER
GROUP LENDING
HOUSEHOLD HEAD
HOUSEHOLD INCOME
HOUSEHOLD WELFARE
HOUSEHOLDS
IMPACT EVALUATION
INSTRUMENT
INTEREST RATES
INTERNATIONAL BANK
LONGITUDINAL DATA
MICRO FINANCE
MICROCREDIT
MICROCREDIT LOANS
MICROCREDIT PROGRAM
MICROCREDIT PROGRAMS
MICROENTERPRISES
MICROFINANCE
MICROFINANCE PROGRAM
NET WORTH
POLITICAL ECONOMY
POOR
POOR HOUSEHOLDS
POVERTY REDUCTION
RETURNS
RURAL
RURAL AREAS
RURAL DEVELOPMENT
SAMPLE SIZE
SELECTION BIAS
UNEMPLOYMENT
VILLAGE
VILLAGES
Online Access:http://documents.worldbank.org/curated/en/2014/09/20228572/estimating-long-run-impact-microcredit-programs-household-income-net-worth
http://hdl.handle.net/10986/20379
Description
Summary:This paper investigates whether the utilization of microcredit programs has a significant impact on the income and net worth of the participants. Several micro finance institutes are optimistic on the beneficial effects of microcredit programs. Others describe microcredit with interest rates in excess of 20 percent as a poverty trap. This paper uses more than 20 years of panel data on households in Bangladesh to estimate bounds on the causal effects of microcredit programs. The analysis rejects the hypothesis that these microcredit programs are a poverty trap. Moreover, the paper finds moderately positive effects of such programs.

Similar Items