Impact of microfinance on income generation: Evidence from a rural community‐driven development programme in Myanmar

Jongwoo Chung and Booyuel Kim

Journal of International Development, 2024, vol. 36, issue 3, 1866-1879

Abstract: This paper evaluates the impact of a rural community‐driven development programme in Myanmar, which promoted village‐level microfinance for income generation. Utilizing a three‐round household survey consisting of 100 treatment and 50 comparison villages with approximately 8500 households per round, we employ difference‐in‐differences and two‐stage least squares estimations. Our analysis shows three key findings. First, the programme significantly increased access to microfinance, primarily for production. Second, formal and informal finance were substituted in part with village‐level microfinance. As a result, treated households were less likely to borrow money from formal banks or informal lenders such as their relatives, friends or neighbours. Third, the village‐level microfinance nudged rural households to harvest, yield and sell their products more, which led to increase in seasonal income. Our study suggests that microfinance targeted for productive investment can significantly improve income of rural households in developing economies.

Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/jid.3885

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:wly:jintdv:v:36:y:2024:i:3:p:1866-1879

Access Statistics for this article

Journal of International Development is currently edited by Paul Mosley and Hazel Johnson

More articles in Journal of International Development from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().