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Microfinance Non-Financial Services: A Key for Poverty Alleviation? Lessons from Mexico

Author

Listed:
  • Olga Biosca
  • Pamela Lenton

    (Department of Economics, The University of Sheffield)

  • Paul Mosley

    (Department of Economics, The University of Sheffield)

Abstract

Microfinance non-financial services have been recently reformulated as high quality demand-led programs. In the Mexican context, these are now voluntary, can have a cost for the borrower and are frequently supplied in partnership with specialized public or private agencies. Using primary data from a survey of clients of two credit-plus programs in Chiapas, this paper examines and compares the participation determinants and added impact of the training sessions on monetary poverty outcomes of the borrowers. We focus on two specific programs: Business Development Services and Preventive Health Services. Results suggest that the participation decision mainly depends on borrowers’ characteristics. Non-financial services are found to reduce the clients’ likelihood of being under the asset poverty line. No significant differences were observed between the impacts of the two non-financial programs.

Suggested Citation

  • Olga Biosca & Pamela Lenton & Paul Mosley, 2011. "Microfinance Non-Financial Services: A Key for Poverty Alleviation? Lessons from Mexico," Working Papers 2011021, The University of Sheffield, Department of Economics.
    • Handle: RePEc:shf:wpaper:2011021
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    File URL: http://www.shef.ac.uk/economics/research/serps/articles/2011_021.html
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    Cited by:

    1. Danstun B. Ngonyani & Harun J. Mapesa, 2019. "Implication of Credit Supervision Practices on Portfolio at risk of Microfinance Institutions in Tanzania," Journal of Economics and Financial Analysis, Tripal Publishing House, vol. 3(1), pages 27-45.

    More about this item

    Keywords

    Non-financial services; Credit-plus; Microfinance; Poverty; Oportunidades.;
    All these keywords.

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