IDEAS home Printed from https://ideas.repec.org/p/zbw/hawdps/67.html
   My bibliography  Save this paper

Does microfinance have an impact on borrower's consumption patterns and women's empowerment?

Author

Listed:
  • Feldhoff, Charlotte H.
  • Liu, Yi
  • Feldhoff, Patricia R.

Abstract

This paper conducts a thorough data analysis using cross-sectional data from a study carried out in Mexico including over 16,500 observations. In the study, clusters were selected in areas Compartamos Banco, a Microfinance institution (MFI), has not lent in before. The clusters were randomly assigned to either the treatment or the control group. The analysis suggests that Microfinance has a significant positive effect on school and food expenditure but no apparent effect on entrepreneurship. Using regression analysis, a significant positive effect on women's empowerment and its positive effect on total consumption is found.

Suggested Citation

  • Feldhoff, Charlotte H. & Liu, Yi & Feldhoff, Patricia R., 2019. "Does microfinance have an impact on borrower's consumption patterns and women's empowerment?," Weidener Diskussionspapiere 67, University of Applied Sciences Amberg-Weiden (OTH).
    • Handle: RePEc:zbw:hawdps:67
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/195094/1/1662785070.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Abhijit Banerjee & Esther Duflo & Richard Hornbeck, 2018. "How Much do Existing Borrowers Value Microfinance? Evidence from an Experiment on Bundling Microcredit and Insurance," Economica, London School of Economics and Political Science, vol. 85(340), pages 671-700, October.
    2. Manuela Angelucci & Dean Karlan & Jonathan Zinman, 2015. "Microcredit Impacts: Evidence from a Randomized Microcredit Program Placement Experiment by Compartamos Banco," American Economic Journal: Applied Economics, American Economic Association, vol. 7(1), pages 151-182, January.
    3. Abhijit Banerjee & Dean Karlan & Jonathan Zinman, 2015. "Six Randomized Evaluations of Microcredit: Introduction and Further Steps," American Economic Journal: Applied Economics, American Economic Association, vol. 7(1), pages 1-21, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Manthos D. Delis & Fulvia Fringuellotti & Steven Ongena, 2020. "Credit and Income Inequality," Staff Reports 929, Federal Reserve Bank of New York.
    2. Emily Breza & Cynthia Kinnan, 2021. "Measuring the Equilibrium Impacts of Credit: Evidence from the Indian Microfinance Crisis," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 136(3), pages 1447-1497.
    3. Bhuiyan, Muhammad Faress & Ivlevs, Artjoms, 2019. "Micro-entrepreneurship and subjective well-being: Evidence from rural Bangladesh," Journal of Business Venturing, Elsevier, vol. 34(4), pages 625-645.
    4. N'dri, Lasme Mathieu & Kakinaka, Makoto, 2020. "Financial inclusion, mobile money, and individual welfare: The case of Burkina Faso," Telecommunications Policy, Elsevier, vol. 44(3).
    5. Pedro Carneiro & Sokbae Lee & Daniel Wilhelm, 2020. "Optimal data collection for randomized control trials [Microcredit impacts: Evidence from a randomized microcredit program placement experiment by Compartamos Banco]," The Econometrics Journal, Royal Economic Society, vol. 23(1), pages 1-31.
    6. Catalina Martinez, 2015. "Doing Well by Doing Good? Empirical Evidence from Microfinance," CFD Working Papers 06-2015, Centre for Finance and Development, The Graduate Institute.
    7. Ragui Assaad & Caroline Krafft & Shaimaa Yassin, 2020. "Job creation or labor absorption? An analysis of private sector job growth in Egypt," Middle East Development Journal, Taylor & Francis Journals, vol. 12(2), pages 177-207, July.
    8. Kochar, Anjini & Nagabhushana, Closepet & Sarkar, Ritwik & Shah, Rohan & Singh, Geeta, 2022. "Financial access and women's role in household decisions: Empirical evidence from India's National Rural Livelihoods project," Journal of Development Economics, Elsevier, vol. 155(C).
    9. Ahlin, Christian & Gulesci, Selim & Madestam, Andreas & Stryjan, Miri, 2020. "Loan contract structure and adverse selection: Survey evidence from Uganda," Journal of Economic Behavior & Organization, Elsevier, vol. 172(C), pages 180-195.
    10. Bédécarrats, Florent & Guérin, Isabelle & Morvant-Roux, Solène & Roubaud, François, 2019. "Estimating microcredit impact with low take-up, contamination and inconsistent data. A replication study of Crépon, Devoto, Duflo, and Parienté (American Economic Journal: Applied Economics, 2015)," International Journal for Re-Views in Empirical Economics (IREE), ZBW - Leibniz Information Centre for Economics, vol. 3(2019-3), pages 1-22.
    11. Gyorgy Molnar & Attila Havas, 2019. "Escaping from the poverty trap with social innovation: a social microcredit programme in Hungary," CERS-IE WORKING PAPERS 1912, Institute of Economics, Centre for Economic and Regional Studies.
    12. Czura, Kristina, 2015. "Do flexible repayment schedules improve the impact of microcredit?," Discussion Papers in Economics 26608, University of Munich, Department of Economics.
    13. Karlan, Dean & Osman, Adam & Zinman, Jonathan, 2016. "Follow the money not the cash: Comparing methods for identifying consumption and investment responses to a liquidity shock," Journal of Development Economics, Elsevier, vol. 121(C), pages 11-23.
    14. Nakano, Yuko & Magezi, Eustadius F., 2020. "The impact of microcredit on agricultural technology adoption and productivity: Evidence from randomized control trial in Tanzania," World Development, Elsevier, vol. 133(C).
    15. Chowdhury, Shyamal & Hasan, Syed & Sharma, Uttam, 2024. "The Role of Trainee Selection in the Effectiveness of Vocational Training: Evidence from a Randomized Controlled Trial in Nepal," IZA Discussion Papers 16705, Institute of Labor Economics (IZA).
    16. Nargiza Alimukhamedova & Randall Filer & Jan Hanousek, 2017. "Themed Issue: Cash Transfers and Microfinance," Development Policy Review, Overseas Development Institute, vol. 35(5), pages 645-657, September.
    17. Laston Petro Manja & Isatou A. Badjie, 2022. "The Welfare Effects of Formal and Informal Financial Access in the Gambia: A Comparative Assessment," SAGE Open, , vol. 12(1), pages 21582440221, March.
    18. Nusrat Abedin Jimi & Plamen V. Nikolov & Mohammad Abdul Malek & Subal Kumbhakar, 2019. "The effects of access to credit on productivity: separating technological changes from changes in technical efficiency," Journal of Productivity Analysis, Springer, vol. 52(1), pages 37-55, December.
    19. Lota Tamini & Ibrahima Bocoum & Ghislain Auger & Kotchikpa Gabriel Lawin & Arahama Traoré, 2019. "Enhanced Microfinance Services and Agricultural Best Management Practices: What Benefits for Smallholders Farmers? An Evidence from Burkina Faso," CIRANO Working Papers 2019s-11, CIRANO.
    20. Nene Oumou & Jonathan Goyette, 2016. "Can microcredit impact the activity of small and medium enterprises? New evidence from a Regression Discontinuity Design in Panama," Cahiers de recherche 16-05, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.

    More about this item

    Keywords

    microfinance; consumption patterns; women's empowerment; Mexico;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:hawdps:67. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: http://www.oth-aw.de/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.