The Impact of Microfinance Loans on the Clients' Enterprises: Caja Los Andes, Bolivia
AbstractThis paper analyzes the impact of microfinance loans on productivity and growth of micro-enterprises using a unique client database from Caja Los Andes, one of the leading microfinance providers in Bolivia. Our results show that the clients put the additional funds to good use: Clients with a higher number and a higher average size of prior loans are found to have higher growth rates than other clients. The effects on productivity depend on the size of the business. Surprisingly, clients with larger businesses benefit more from prior loans than others.
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Bibliographic InfoPaper provided by Post Graduate Programme "Allocation on Financial Markets", University of Mannheim in its series GK working paper series with number 2001-03.
Length: 37 pages
Date of creation: Mar 2001
Date of revision: Nov 2001
Microfinance; Microenterprise development; micro-enterprise growth; Impact analysis;
Find related papers by JEL classification:
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
- O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
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