The Benefits and Costs of Microfinance: Evidence from Bangladesh
Using the latest developments from the evaluation literature, namely the technique of matching, this paper shows a positive, but lower than previously thought, effect of microfinance on expenditure per capita, supply of labour, and level of school enrolment for boys and girls. For instance, participants spend 3 per cent more on average than non-participants in control villages. This paper also takes into account repayment delays to calculate the cost of credit provision. It shows how a better investigation at the individual level of the benefits brought and the cost borne could help microfinance institutions to better select their customers. JEL Classification: C14, D10, G21, I38, O12, O16
Volume (Year): 44 (2008)
Issue (Month): 4 ()
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