The Benefits and Costs of Microfinance: Evidence from Bangladesh
AbstractUsing the latest developments from the evaluation literature, namely the technique of matching, this paper shows a positive, but lower than previously thought, effect of microfinance on expenditure per capita, supply of labour, and level of school enrolment for boys and girls. For instance, participants spend 3 per cent more on average than non-participants in control villages. This paper also takes into account repayment delays to calculate the cost of credit provision. It shows how a better investigation at the individual level of the benefits brought and the cost borne could help microfinance institutions to better select their customers. JEL Classification: C14, D10, G21, I38, O12, O16
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Journal of Development Studies.
Volume (Year): 44 (2008)
Issue (Month): 4 ()
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Find related papers by JEL classification:
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- D10 - Microeconomics - - Household Behavior - - - General
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
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