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Microcredit and Poverty Alleviation: Can Microcredit Close the Deal?

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  • M. G. Quibria

Abstract

This paper explores the relationship between microcredit and poverty reduction. To investigate this question, we posit a bare-bone, household model that outlines the economic environment within which various types of family microenterprises operate. It highlights a number of issues that impinge on household earnings such as the nature of the labour market, technology, product demand and entrepreneurial skills. The paper argues that the impact of microcredit is likely to be different across household types as well as across different economic environments.

Suggested Citation

  • M. G. Quibria, 2012. "Microcredit and Poverty Alleviation: Can Microcredit Close the Deal?," WIDER Working Paper Series wp-2012-078, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2012-078
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    File URL: https://www.wider.unu.edu/sites/default/files/wp2012-078.pdf
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    References listed on IDEAS

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    Cited by:

    1. Mathilde Maîtrot & Miguel Niño-Zarazúa, 2017. "Poverty and wellbeing impacts of microfinance: What do we know?," WIDER Working Paper Series 190, World Institute for Development Economic Research (UNU-WIDER).
    2. Martín Grandes & Milagros Satorre, 2012. "¿Cuál es y cómo se caracteriza la demanda potencial de microcréditos en la Argentina? Nuevas estimaciones," Ensayos de Política Económica, Departamento de Investigación Francisco Valsecchi, Facultad de Ciencias Económicas, Pontificia Universidad Católica Argentina., vol. 1(6), pages 54-76, Octubre.
    3. Quibria, M.G., 2020. "Poverty and Policy in the Developing World: Before and After the Pandemic," MPRA Paper 104240, University Library of Munich, Germany, revised 15 Oct 2020.
    4. Mathilde Maîtrot & Miguel Niño-Zarazúa, 2017. "Poverty and wellbeing impacts of microfinance: What do we know?," WIDER Working Paper Series wp-2017-190, World Institute for Development Economic Research (UNU-WIDER).

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    More about this item

    Keywords

    Households; Labour market; Microfinance; Poverty;
    All these keywords.

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