Microfinance and poverty reduction: Evidence from Djibouti

نویسندگان

چکیده

Does access to microfinance improve household welfare? We seek the answer this question using data on 2,060 borrower and nonborrower households based in six major urban centers of Djibouti. construct a composite index multidimensional poverty that captures various aspects well-being, including ownership agricultural livestock assets, land, transportation, employment, quality housing, sanitation facilities. carry out estimations an instrumental variable–based empirical strategy number econometric techniques. Our results show neither microcredit nor its ostensibly productive use is significantly associated with regardless duration time since loan was acquired. This holds for both amount obtained. The are robust across specifications techniques employed. lack significant beneficial effect found study adds growing literature questioning effectiveness as tool alleviation. findings raise doubts usefulness Djibouti's program.

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ژورنال

عنوان ژورنال: Review of Development Economics

سال: 2022

ISSN: ['1467-9361', '1363-6669']

DOI: https://doi.org/10.1111/rode.12856