IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-25-00298.html

Impact of microfinance on education demand: An empirical analysis of WAEMU countries

Author

Listed:
  • Momar khary Mbow

    (University of Paris 8-Vincennes, LAREM-UCAD)

  • Diadié Diaw

    (University of Rennes 2, LiRIS)

  • Albert Lessoua

    (ESCE - International Business School, OMNES Education)

Abstract

This paper studies the impact of microfinance on education dynamics within a sample of eight developing countries in West Africa (WEAMU) over the period 1996-2020. This article addresses an important issue that has received little attention in the literature, the role of microfinance in the private financing of education in Sub-Saharan Africa. The results show that access to microcredit through the increase in the number of active borrowers improves income for the poor and reduces inequalities in education access within the region. They also draw attention to the perverse effects that a high level of lending could have on education. The large loans that borrowers prefer increase the opportunity cost of sending children to school and thus the risk of these children being taken out of the education system to serve as labor for their parents. It is therefore important to make borrowers and lenders aware of the consequences of child labor.

Suggested Citation

  • Momar khary Mbow & Diadié Diaw & Albert Lessoua, 2025. "Impact of microfinance on education demand: An empirical analysis of WAEMU countries," Economics Bulletin, AccessEcon, vol. 45(4), pages 1777-1793.
    • Handle: RePEc:ebl:ecbull:eb-25-00298
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/Pubs/EB/2025/Volume45/EB-25-V45-I4-P155.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jing You & Samuel Annim, 2014. "The Impact of Microcredit on Child Education: Quasi-experimental Evidence from Rural China," Journal of Development Studies, Taylor & Francis Journals, vol. 50(7), pages 926-948, July.
    2. Maldonado, Jorge H. & González-Vega, Claudio, 2008. "Impact of Microfinance on Schooling: Evidence from Poor Rural Households in Bolivia," World Development, Elsevier, vol. 36(11), pages 2440-2455, November.
    3. Christopher F Baum & Mark E. Schaffer & Steven Stillman, 2007. "Enhanced routines for instrumental variables/generalized method of moments estimation and testing," Stata Journal, StataCorp LLC, vol. 7(4), pages 465-506, December.
    4. Niels Hermes & Robert Lensink, 2007. "The empirics of microfinance: what do we know?," Economic Journal, Royal Economic Society, vol. 117(517), pages 1-10, February.
    5. John Kandulu & Sarah Wheeler & Alec Zuo & Nicholas Sim, 2020. "The Impact of Microcredit Loans on School Enrolment in Bangladesh," Journal of Development Studies, Taylor & Francis Journals, vol. 56(9), pages 1725-1744, July.
    6. Niels Hermes, 2014. "Does microfinance affect income inequality?," Applied Economics, Taylor & Francis Journals, vol. 46(9), pages 1021-1034, March.
    7. Levison, Deborah & Moe, Karine S. & Marie Knaul, Felicia, 2001. "Youth Education and Work in Mexico," World Development, Elsevier, vol. 29(1), pages 167-188, January.
    8. Mohamed Amine Boutabba & Diadié Diaw & Amandine Laré & Albert Lessoua, 2020. "The impact of microfinance on energy access: a case study from peripheral districts of Lomé, Togo," Applied Economics, Taylor & Francis Journals, vol. 52(45), pages 4927-4951, September.
    9. George Psacharopoulos, 1997. "Child labor versus educational attainment Some evidence from Latin America," Journal of Population Economics, Springer;European Society for Population Economics, vol. 10(4), pages 377-386.
    10. Coleman, Brett E., 1999. "The impact of group lending in Northeast Thailand," Journal of Development Economics, Elsevier, vol. 60(1), pages 105-141, October.
    11. Lansana Bangoura & Momar Khary Mbow & Albert Lessoua & Diadié Diaw, 2016. "Impact of Microfinance on Poverty and Inequality A Heterogeneous Panel Causality Analysis," Revue d'économie politique, Dalloz, vol. 126(5), pages 789-818.
    12. Joseph Kimos Adjei & Thankom Arun & Farhad Hossain, 2009. "The Role of Microfinance in Asset-Building and Poverty Reduction: The Case of Sinapi Aba Trust of Ghana," Global Development Institute Working Paper Series 8709, GDI, The University of Manchester.
    13. Nolwen Henaff & Marie-France Lange & Jean-Yves Martin, 2009. "Revisiter les relations entre pauvreté et éducation," Revue française de socio-Economie, La découverte, vol. 0(1), pages 187-194.
    14. Dean Karlan & Jonathan Zinman, 2010. "Expanding Credit Access: Using Randomized Supply Decisions to Estimate the Impacts," The Review of Financial Studies, Society for Financial Studies, vol. 23(1), pages 433-464, January.
    15. George Psacharopoulos & Harry Anthony Patrinos, 1997. "Family size, schooling and child labor in Peru - An empirical analysis," Journal of Population Economics, Springer;European Society for Population Economics, vol. 10(4), pages 387-405.
    16. Imai, Katsushi S. & Gaiha, Raghav & Thapa, Ganesh & Annim, Samuel Kobina, 2012. "Microfinance and Poverty—A Macro Perspective," World Development, Elsevier, vol. 40(8), pages 1675-1689.
    17. Abhijit Banerjee & Esther Duflo & Rachel Glennerster & Cynthia Kinnan, 2015. "The Miracle of Microfinance? Evidence from a Randomized Evaluation," American Economic Journal: Applied Economics, American Economic Association, vol. 7(1), pages 22-53, January.
    18. Kabeer, Naila, 2001. "Conflicts Over Credit: Re-Evaluating the Empowerment Potential of Loans to Women in Rural Bangladesh," World Development, Elsevier, vol. 29(1), pages 63-84, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gutiérrez-Nieto, Begoña & Serrano-Cinca, Carlos, 2019. "20 years of research in microfinance: An information management approach," International Journal of Information Management, Elsevier, vol. 47(C), pages 183-197.
    2. Simon Zaby, 2019. "Science Mapping of the Global Knowledge Base on Microfinance: Influential Authors and Documents, 1989–2019," Sustainability, MDPI, vol. 11(14), pages 1-21, July.
    3. Mushtaq, Rizwan & Bruneau, Catherine, 2019. "Microfinance, financial inclusion and ICT: Implications for poverty and inequality," Technology in Society, Elsevier, vol. 59(C).
    4. Akotey, Joseph Oscar & Adjasi, Charles K.D., 2016. "Does Microcredit Increase Household Welfare in the Absence of Microinsurance?," World Development, Elsevier, vol. 77(C), pages 380-394.
    5. Kamel Bel Hadj Miled & Moheddine Younsi & Monia Landolsi, 2022. "Does microfinance program innovation reduce income inequality? Cross-country and panel data analysis," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-15, December.
    6. Shahidur R. Khandker & Hussain A. Samad, 2014. "Microfinance Growth and Poverty Reduction in Bangladesh: What Does the Longitudinal Data Say?," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 37(1-2), pages 127-157.
    7. Ishraq Ahmed & Erick Kitenge, 2022. "Microfinance outreach and aggregate welfare," Journal of International Development, John Wiley & Sons, Ltd., vol. 34(3), pages 652-669, April.
    8. Islam, Asadul & Nguyen, Chau & Smyth, Russell, 2015. "Does microfinance change informal lending in village economies? Evidence from Bangladesh," Journal of Banking & Finance, Elsevier, vol. 50(C), pages 141-156.
    9. Nebal Al Maaitah, 2019. "The Legitimacy of Profit of Microlending Institutions and Womens Empowerment: A Case Study from Jordan," Theory Methodology Practice (TMP), Faculty of Economics, University of Miskolc, vol. 15(01), pages 3-17.
    10. Asma Boussetta, 2022. "Microfinance, Poverty and Education," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 64(1), pages 86-108, March.
    11. Mongi Lassoued, 2021. "Control of corruption, microfinance, and income inequality in MENA countries: evidence from panel data," SN Business & Economics, Springer, vol. 1(7), pages 1-19, July.
    12. Jie Yu & Xiao Han & Baozhen Chen & Jinzheng Ren, 2020. "Estimating the Impact of Poverty Alleviation Microcredit on the Income of Poor Households Using the Propensity Score Matching Method: Evidence from China," Agriculture, MDPI, vol. 10(7), pages 1-19, July.
    13. João Paulo Coelho Ribeiro & Fábio Duarte & Ana Paula Matias Gama, 2022. "Does microfinance foster the development of its clients? A bibliometric analysis and systematic literature review," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-35, December.
    14. Eric Fosu Oteng-Abayie & Kofi Amanor & Anthony Kofi Osei-Fosu, 2023. "Spatial analysis of the effect of microfinance on poverty and inequality in Ghana," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 25(1), pages 196-231, June.
    15. Seng, Kimty, 2019. "The Poverty-Reducing Effects of Financial Inclusion: Evidence from Cambodia," MPRA Paper 95726, University Library of Munich, Germany, revised 26 Aug 2019.
    16. Ane C. H. Jensen & Amjad Naveed, 2025. "Assessing the Role of Microfinance in Mitigating Income Inequality: New Evidence from a Global Context," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 179(1), pages 371-397, August.
    17. Habimana, Dominique & Haughton, Jonathan, . "Does Rwanda’s flagship microcredit programme boost agriculture and incomes?," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 17(3).
    18. Drusilla K. Brown & Alan V. Deardorff & Robert M. Stern, 2009. "The Effects of Multinational Production on Wages and Working Conditions in Developing Countries," World Scientific Book Chapters, in: Globalization And International Trade Policies, chapter 17, pages 623-687, World Scientific Publishing Co. Pte. Ltd..
    19. N’Guessan, Marie Noëlle & Hartarska, Valentina, 2021. "Funding for BOP in Emerging Markets: Organizational Forms and Capital Structures of Microfinance Institutions," Research in International Business and Finance, Elsevier, vol. 58(C).
    20. Olga Kondratjeva, 2021. "Borrowing channels, purposes, and household investment and consumption: evidence from Nepal," Journal of Consumer Affairs, Wiley Blackwell, vol. 55(4), pages 1591-1613, December.

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • I2 - Health, Education, and Welfare - - Education

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-25-00298. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.