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The Effects of Microcredit on Households Economy in Cambodia


  • Phon Sophat

    (National Bank of Cambodia)

  • Bun Phany

    (Khemerak University)


The impacts of loan on livelihoods' households such as incomes, consumptions, education and their assets in Cambodia are very important to finger out. The AMK data is employed in the year 2007, 2012, 2013 and 2014 which is determined and surveyed entire 18 provinces of Cambodia by research department. The empirical findings to meet the objectives of this study by using Ordinary Least Squares regression (OLS), Fixed Effect model(FE) and Random Effect model(RE). Fixed Effect model is most appropriate tool to use and it suggests that most households using AMK loans increased their livelihoods and incomes. Casual impacts of loan show that other loan get worse off in terms of education expenditures while AMK loans improve the education of the households. Furthermore, loans impact positively on the health expenditures. This increases around 1.03% of health expenditures. AMK loan improves the households' educations around 12.39% across the years. Clients of AMK can foster the households' incomes by 4% due to the regression result. In term of assets, AMK loan improves positively to the total land usage. Most of AMK clients have lesser educational levels than non-clients shown in this survey. Households like to use two loan sources respectively while their incomes have extremely limited. To prove more details, Cambodian households usually use the loan in non-productive business such as wedding expenditures, funeral expenditures, dwelling expenditures and other make-up tools which do not earn much incomes for their livelihoods.

Suggested Citation

  • Phon Sophat & Bun Phany, 2022. "The Effects of Microcredit on Households Economy in Cambodia," Working Papers hal-03538199, HAL.
  • Handle: RePEc:hal:wpaper:hal-03538199
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    References listed on IDEAS

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    More about this item


    MFIs and Over-indebtedness; L31 Micro-credits; JEL CODE: O16; Financial Inclusion; Cambodia;
    All these keywords.

    JEL classification:

    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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