Microcredit impact in Kyrgyzstan: A Case Study
Microcredit has expanded rapidly since its beginnings in the last 1970s, but whether and how much it reduces poverty is the subject of intense debate. Generally it depends on how the program is implemented and the set of policies that regulate it. In this spirit, microcredit impacts in the Kyrgyz Republic are investigated and a modest program evaluation undertaken, using a data set of 5012 households from the Kyrgyzstan Integrated Household Survey (KIHS) that covers 2006-2010. Microfinance is used to fight the poverty, buying food, and to start a new business and less for buying some Results indicate a good targeting of microfinance with respect to education, family size and age, but a reverse targeting for the income. Finally, a test on the impact of microfinance on the income generation was not significant.
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