The impacts of microcredit on poverty reduction: evidence from Cambodian rural villages

Phim Runsinarith
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Phim Runsinarith: United Nations Development Programme in Cambodia

Philippine Review of Economics, 2014, vol. 51, issue 2, 121-150

Abstract: This paper attempts to assess the poverty impact of microcredit for a panel of 827 households surveyed in 2001, 2004, and 2008 using propensity score matching (psm) and the difference-in-difference (did) method. The result shows that the poverty headcount in the microfinance institution (mfi) sample, which was highest in 2001, dropped faster compared to those in two other samples. This finding suggests that using loans from mfis may have a positive effect on poverty reduction. The result of regression analysis based on the sample with the common support using the did approach confirms the same results reflecting in higher per capita consumption expenditure, higher food expenditure, higher education expenditure, and higher healthcare expenditure over 2001-2004. Over a longer term 2001-2008, however, the effect of using mfi loan is still found to be significant and positive on only per capita consumption and per capita food consumption.

Keywords: microcredit; poverty reduction; propensity score matching; difference-in-difference method (search for similar items in EconPapers)
JEL-codes: I30 O17 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (1)

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