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Do Village Funds Improve Access to Finance? Evidence from Thailand

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  • Menkhoff, Lukas
  • Rungruxsirivorn, Ornsiri

Abstract

Summary This paper examines whether recently introduced "village funds," one of the largest microfinance programs ever implemented, improve access to finance. Village funds are analyzed in a cross-sectional approach in comparison to competing financial institutions. We find, first, that they reach the target group of lower income households better than formal financial institutions. Second, village funds provide loans to those kinds of borrowers who tend to be customers of informal financial institutions. Third, village funds help to reduce credit constraints. Thus, village funds provide services in the intended direction, albeit to a seemingly limited degree.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 39 (2011)
Issue (Month): 1 (January)
Pages: 110-122

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Handle: RePEc:eee:wdevel:v:39:y:2011:i:1:p:110-122

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

Related research

Keywords: informal financial institutions microfinance credit constraint Thailand Asia;

References

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Citations

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Cited by:
  1. Rasmus Heltberg & Naomi Hossain & Anna Reva, 2012. "Living through Crises : How the Food, Fuel, and Financial Shocks Affect the Poor," World Bank Publications, The World Bank, number 6013, October.
  2. Boonperm, Jirawan & Haughton, Jonathan & Khandker, Shahidur R., 2013. "Does the Village Fund matter in Thailand? Evaluating the impact on incomes and spending," Journal of Asian Economics, Elsevier, vol. 25(C), pages 3-16.
  3. Boonperm, Jirawan & Haughton, Jonathan & Khandker, Shahidur R. & Rukumnuaykit, Pungpond, 2012. "Appraising the Thailand village fund," Policy Research Working Paper Series 5998, The World Bank.

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