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Microfinance outreach and aggregate welfare

Author

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  • Ishraq Ahmed
  • Erick Kitenge

Abstract

This study investigates the impact of microfinance outreach on aggregate economic well‐being. We specifically examine the effect of microfinance outreach on aggregate welfare, as measured by income and household consumption growth, across 108 countries over the period 2005–2015. Our empirical results confirm the aptitude of microfinance outreach to enhance aggregate welfare. Mainly, the average loan balance per borrower and the percentage of women borrowers positively impacted aggregate welfare. Additionally, outreach affects consumption growth strongly. Therefore, this study upholds the incorporation of microfinance into policies targeting aggregate welfare and economic development.

Suggested Citation

  • 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.
    • Handle: RePEc:wly:jintdv:v:34:y:2022:i:3:p:652-669
    DOI: 10.1002/jid.3616
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    References listed on IDEAS

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