Microfinance and Rural Household Development

Julius H. Kotir and Franklin Obeng-Odoom
Additional contact information
Julius H. Kotir: King’s College London, United Kingdom. Email: kotir22@yahoo.com
Franklin Obeng-Odoom: University of Sydney, Australia. Email: fobe7790@usyd.edu.au

Journal of Developing Societies, 2009, vol. 25, issue 1, 85-105

Abstract: Though at the theoretical level, micro-credit is said to play a significant role in poverty reduction, empirical work on the role of micro-credit in poverty reduction is mixed with some studies indicating high levels of employment and income generation and others suggesting a worsening of poverty with micro-credit. Does micro-credit really get to the poor? Does it enhance or impede their productivity? Based on a study of 139 households in one rural area in the Upper West Region of Ghana, we find that: (a) Beneficiaries of micro-credit divert a significant portion of such loans into household consumption – albeit with moderate impact on house-hold productivity and welfare and (b) Micro-credit has modest impact on rural community development.

Keywords: Ghana; micro-credit; microfinance; rural; household development (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/0169796X0902500104 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:jodeso:v:25:y:2009:i:1:p:85-105

DOI: 10.1177/0169796X0902500104

Access Statistics for this article

More articles in Journal of Developing Societies
Bibliographic data for series maintained by SAGE Publications ().