EconPapers    
Economics at your fingertips  
 

WHO BENEFITS FROM MICROFINANCE? THE IMPACT EVALUATION OF LARGE SCALE PROGRAMS IN BANGLADESH

Asadul Islam ()

No 29/08, Monash Economics Working Papers from Monash University, Department of Economics

Abstract: This paper evaluates the impact of microfinance on household consumption using a new, large and unique cross-section data set from Bangladesh. The richness of the data and program eligibility criterion allow the use of a number of non-experimental impact evaluation techniques, in particular instrumental variable (IV) estimation and propensity score matching (PSM). Estimates from both IV and PSM strategies have been interpreted as average causal effects that are valid for various groups of participants in microfinance. The overall results indicate that the effects of micro loans are not robust across all groups of poor household borrowers. It appears that the poorest of the poor participants are among those who benefit most. The impact estimates are lower, or sometimes even negative, for those households marginal to the participation decision. The effects of participation are, in general, stronger for male borrowers. These results hold across different specifications and methods, including correction for various sources of selection bias (including possible spill-over effects).

Keywords: Microfinance; treatment effect; Matching; Consumption. (search for similar items in EconPapers)
JEL-codes: C31 H43 I30 L30 O12 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev and nep-mfd
Date: 2008-10-02
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
http://www.buseco.monash.edu.au/eco/research/paper ... icrofinanceislam.pdf (application/pdf)

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:mos:moswps:2008-29

Ordering information: This working paper can be ordered from
http://www.buseco.mo ... eco/research/papers/

Access Statistics for this paper

More papers in Monash Economics Working Papers from Monash University, Department of Economics Department of Economics, Monash University, Victoria 3800, Australia. Contact information at EDIRC.
Bibliographic data for series maintained by Simon Angus ().

 
Page updated 2019-06-11
Handle: RePEc:mos:moswps:2008-29