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Microfinance Non-Financial Services: A Key for Poverty Alleviation? Lessons from Mexico

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Author Info

  • Olga Biosca
  • Pamela Lenton

    (Department of Economics, The University of Sheffield)

  • Paul Mosley

    ()
    (Department of Economics, The University of Sheffield)

Abstract

Microfinance non-financial services have been recently reformulated as high quality demand-led programs. In the Mexican context, these are now voluntary, can have a cost for the borrower and are frequently supplied in partnership with specialized public or private agencies. Using primary data from a survey of clients of two credit-plus programs in Chiapas, this paper examines and compares the participation determinants and added impact of the training sessions on monetary poverty outcomes of the borrowers. We focus on two specific programs: Business Development Services and Preventive Health Services. Results suggest that the participation decision mainly depends on borrowers’ characteristics. Non-financial services are found to reduce the clients’ likelihood of being under the asset poverty line. No significant differences were observed between the impacts of the two non-financial programs.

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File URL: http://www.shef.ac.uk/economics/research/serps/articles/2011_021.html
File Function: First version, 2011
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Bibliographic Info

Paper provided by The University of Sheffield, Department of Economics in its series Working Papers with number 2011021.

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Length: 28 pages
Date of creation: Oct 2011
Date of revision:
Handle: RePEc:shf:wpaper:2011021

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Keywords: Non-financial services; Credit-plus; Microfinance; Poverty; Oportunidades.;

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