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Poverty Status and the Impact of Formal Credit on Technology Use and Wellbeing among Ethiopian Smallholders

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  • Liverpool, Lenis Saweda O.
  • Winter-Nelson, Alex

Abstract

Summary This paper examines the impact of formal credit (largely microfinance) on the use of improved technology and on consumption and asset growth across households in different degrees of asset poverty. Using data from rural Ethiopia, the analysis finds no relationship between participation in microfinance programs and the use of technologies or consumption growth among the poorest households even though the use of certain technologies, like fertilizer, contributes to their asset accumulation over time. For other households, microfinance has positive effects on both consumption and asset growth as well as on the use of improved technology. The findings imply variation in constraints faced by different classes of poor households and suggest the value of asset-based poverty classifications in identifying target groups for poverty interventions.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 38 (2010)
Issue (Month): 4 (April)
Pages: 541-554

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Handle: RePEc:eee:wdevel:v:38:y:2010:i:4:p:541-554

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Web page: http://www.elsevier.com/locate/worlddev

Related research

Keywords: Africa Ethiopia fertilizer microfinance poverty;

References

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  16. Alex Winter-Nelson & Anna A. Temu, 2005. "Liquidity constraints, access to credit and pro-poor growth in rural Tanzania," Journal of International Development, John Wiley & Sons, Ltd., vol. 17(7), pages 867-882.
  17. Gine, Xavier & Klonner, Stefan, 2006. "Credit Constraints as a Barrier to Technology Adoption by the Poor: Lessons from South-Indian Small-Scale Fishery," Working Paper Series RP2006/104, World Institute for Development Economic Research (UNU-WIDER).
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Citations

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Cited by:
  1. Liverpool, Lenis Saweda O. & Winter-Nelson, Alex, 2010. "Poverty status and the impact of social networks on smallholder technology adoption in rural Ethiopia," IFPRI discussion papers 970, International Food Policy Research Institute (IFPRI).
  2. Jing You & Samuel Annim, 2013. "The impact of microcredit on child education: quasi-experimental evidence from rural China," Brooks World Poverty Institute Working Paper Series 18313, BWPI, The University of Manchester.
  3. Liverpool-Tasie, Lenis Saweda, 2012. "Targeted Subsidies and Private Market Participation: An Assessment of Fertilizer Demand in Nigeria:," IFPRI discussion papers 1194, International Food Policy Research Institute (IFPRI).

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