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.
منابع مشابه
Microfinance and Poverty: Evidence Using Panel Data from Bangladesh
Microfinance supports mainly informal activities that often have a low return and low market demand. It may therefore be hypothesized that the aggregate poverty impact of microfinance is modest or even nonexistent. If true, the poverty impact of microfinance observed at the participant level represents either income redistribution or short-run income generation from the microfinance interventio...
متن کاملMicrofinance as a Poverty Reduction Tool—A Critical Assessment
This paper attempts to provide a critical appraisal of the debate on the effectiveness of microfinance as a universal poverty reduction tool. It argues that while microfinance has developed some innovative management and business strategies, its impact on poverty reduction remains in doubt. Microfinance, however, certainly plays an important role in providing safety-net and consumption smoothen...
متن کاملAgricultural Growth and Poverty Reduction: Additional Evidence
Agricultural growth has long been recognized as an important instrument for poverty reduction. Yet, measurements of this relationship are still scarce and not always reliable. This paper presents additional evidence at both the sectoral and household levels based on recent data. Results show that rural poverty reduction has been associated with growth in yields and in agricultural labor product...
متن کاملmicrofinance an approach for increasing output in the agricultural sector and poverty reduction in rural areas
considering the expansion of global poverty and its resulting concerns, the objectives of the millennium development goals (mdgs) may not be achieved unless a solution is found for this widespread phenomenon. therefore finding a solution for poverty reduction and improving the welfare of the vulnerable group has become a universal objective. this paper discusses the poor performance of formal f...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Review of Development Economics
سال: 2022
ISSN: ['1467-9361', '1363-6669']
DOI: https://doi.org/10.1111/rode.12856