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Microcredit Impacts: Evidence from a Large-Scale Observational Study in Brazil

Author

Listed:
  • Rafael Goldszmidt

    (Getulio Vargas Foundation)

  • Patrick Behr

    (University of Lugano)

  • Cesar Zucco

    (Getulio Vargas Foundation)

  • Anna-Katharina Lenz

    (RMIT University)

  • Lauro Gonzalez

    (Getulio Vargas Foundation)

  • Martin Valdivia

    (GRADE)

Abstract

This paper studies the impact of microcredit in Brazil. We use a propensity score matching on original primary data on business and personal outcomes to compare veteran clients of BNDES—Brazil’s largest government-owned development bank—to a matched sample of more recent clients. Based on administrative data as well as data from a survey of 2107 clients from the South and Northeast regions of Brazil, the findings show no significant impacts on income, employment generation, access to credit, and business formalization, except for the poorest Municipalities of the Northeast, where microcredit presented positive effects.

Suggested Citation

  • Rafael Goldszmidt & Patrick Behr & Cesar Zucco & Anna-Katharina Lenz & Lauro Gonzalez & Martin Valdivia, 2022. "Microcredit Impacts: Evidence from a Large-Scale Observational Study in Brazil," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(4), pages 1940-1966, August.
    • Handle: RePEc:pal:eurjdr:v:34:y:2022:i:4:d:10.1057_s41287-021-00448-3
    DOI: 10.1057/s41287-021-00448-3
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    References listed on IDEAS

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    Cited by:

    1. Gomes, Matheus da Costa & Valle, Mauricio Ribeiro do, 2023. "Do companies that benefit from development banks' funding invest more? New evidence from Brazil," Economic Modelling, Elsevier, vol. 127(C).

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    More about this item

    Keywords

    Brazil; Gender; Impact study; Microcredit; Propensity score matching;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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