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.
Bibliographic Details
| Main Authors: |
Woutersen, Tiemen,
Khandker, Shahidur R. |
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| Language: | English
en_US |
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| Published: |
World Bank Group, Washington, DC
2014-09
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| 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, |
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| Online Access: | http://documents.worldbank.org/curated/en/2014/09/20228572/estimating-long-run-impact-microcredit-programs-household-income-net-worth
https://hdl.handle.net/10986/20379
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