Matching grants and economic activities among horticultural entrepreneurs: Long-term evidence from Rwanda

Marup Hossain, Athur Mabiso and Alessandra Garbero

World Development, 2022, vol. 150, issue C

Abstract: Matching grants can boost economic activities of small-scale producers by relaxing their credit or risk constraints. This study evaluates the impacts of a matching grants scheme targeted to horticultural enterprises in Rwanda. The intervention scores and endorses a business proposal if the proposal scores above the cut-off endorsement score. Following endorsement, if an entrepreneur receives and repays 50% of a loan taken for the proposed activity, the program matches the rest of the 50% of the loan. Using a fuzzy regression discontinuity design, we show that the overall intervention increases horticultural income of the households just above the endorsement cut-off compared to the households just below the cut-off. The intervention also increases wage and service income, labor employment, and asset holdings of the beneficiary households. Our results indicate that matching grants interventions can have long-term positive impacts on the livelihoods of small-scale producers.

Keywords: Matching grants; Access to finance; Horticulture; Rwanda (search for similar items in EconPapers)
JEL-codes: D22 G21 Q12 Q14 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0305750X21003272
Full text for ScienceDirect subscribers only

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:eee:wdevel:v:150:y:2022:i:c:s0305750x21003272

DOI: 10.1016/j.worlddev.2021.105712

Access Statistics for this article

World Development is currently edited by O. T. Coomes

More articles in World Development from Elsevier
Bibliographic data for series maintained by Catherine Liu ().