Access to credit has become a staple of modern development policy as a means to facilitate anything from gender equality to growth. In economic terms, it provides an important tool for smoothing household consumption in the wake of unexpected economic shocks, including drought and financial crises. Using data from the Indonesian Family Life Survey (1993-2000), this paper investigates whether access to microfinance institutions affects child health outcomes. Specifically, we estimate a difference-in-differences model to test whether a change in the availability of microfinance institutions at the community level affects the average weight gain of young children.
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Paper provided by Elon University, Department of Economics in its series Working Papers with number
2009-02.