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The Importance of Geographic Access for the Impact of Microfinance

Author

Listed:
  • Alimukhamedova, Nargiza
  • Filer, Randall K
  • Hanousek, Jan

Abstract

The geographic distance between a household and financial institutions may constitute a significant obstacle to achieving the benefits of modern financial institutions. We measure the impact of improved distance-related access to microcredits in Uzbekistan. Residents living closer to microfinance institutions are propensity score matched to those further away using both household and village characteristics. Households located closer to microfinance institutions have larger businesses in terms of income, profits and employees than similar households located further away. Similarly, they spend more on most forms of consumption and have greater savings.

Suggested Citation

  • Alimukhamedova, Nargiza & Filer, Randall K & Hanousek, Jan, 2015. "The Importance of Geographic Access for the Impact of Microfinance," CEPR Discussion Papers 10696, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:10696
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    geographic access; microcredit; microfinance institutions;

    JEL classification:

    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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