High Noon for Microfinance Impact Evaluations: Re-investigating the Evidence from Bangladesh
Maren Duvendack and
MPRA Paper from University Library of Munich, Germany
Recently, microfinance has come under increasing criticism raising questions of the validity of iconic studies which have justified the microfinance phenomenon. This paper applies propensity score matching (PSM), which has become widely used for the analysis of observational data, to the study by Pitt and Khandker (1998) which has been labelled the most rigorous evidence supporting claims that microfinance benefits the poorest especially when targeted on women. After carefully reconstructing the data we differentiate outcomes by gender of borrower, take account of borrowing from several formal and informal sources, and find that the mainly positive impacts of microfinance that we observe are shown by sensitivity analysis to be highly vulnerable to selection on unobservables, and we are therefore not convinced that the relationships between microfinance and outcomes are causal.
Keywords: Microfinance; impact evaluation; Bangladesh; propensity score matching; sensitivity analysis (search for similar items in EconPapers)
JEL-codes: C10 C31 O12 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mfd
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10) Track citations by RSS feed
Downloads: (external link)
https://mpra.ub.uni-muenchen.de/27902/1/MPRA_paper_27902.pdf original version (application/pdf)
Journal Article: High Noon for Microfinance Impact Evaluations: Re-investigating the Evidence from Bangladesh (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:27902
Access Statistics for this paper
More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().