IDEAS home Printed from https://ideas.repec.org/a/ags/eeaeje/249849.html
   My bibliography  Save this article

Influence of microfinance services On farm households income: the case Of oromia credit and saving share Company kuyu Branch Ethiopia

Author

Listed:
  • Kebede, Duga
  • Bezabih, Emana
  • Gezahegn, Ayele

Abstract

The paper analyzes the influence of micro finance services in improving economic performance of farm households using data collected from 100 randomly selected households. Descriptive analysis of the changes in income level between the baseline and survey year was made whereas binary logit model was used to analyze the determinant of incremental income. The results revealed the existence of improvement in the household income of the clientèles. Micro finance service related variables such as proper utilization of the disbursed loan, average loan size, appropriateness of loan disbursement schedule, and access to required amount of loan were found to be significant factors influencing the incremental income of the clientèle. Other determining factors include land holding, shortage of drought animals, and distance to market. The policy implications of the results tend to emphasize on the importance of supervision of loan service, improved loan schedules, proper identification of feasible business plan, income diversification of the clientèle, and strengthening market access

Suggested Citation

  • Kebede, Duga & Bezabih, Emana & Gezahegn, Ayele, 2006. "Influence of microfinance services On farm households income: the case Of oromia credit and saving share Company kuyu Branch Ethiopia," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 11(2), pages 105-105, June.
    • Handle: RePEc:ags:eeaeje:249849
    DOI: 10.22004/ag.econ.249849
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/249849/files/kebede_%20Bezabih_%20Gezahegn_Influence%20of%20Micro%20finance.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.249849?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Zeller, Manfred & Sharma, Manohar & Ahmed, Akhter U. & Rashid, Shahidur, 2001. "Group-based financial institutions for the rural poor in Bangladesh: an institutional- and household-level analysis," Research reports 120, International Food Policy Research Institute (IFPRI).
    2. Zeller, Manfred & Schrieder, Gertrud & von Braun, Joachim & Heidhues, Franz, 1997. "Rural finance for food security for the poor," Food policy reviews 4, International Food Policy Research Institute (IFPRI).
    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. Richard L. Meyer, 2002. "The demand for flexible microfinance products: lessons from Bangladesh," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(3), pages 351-368.
    2. Dufhues, T. & Buchenrieder, G., 2004. "Der Beitrag der Conjoint Analyse zur nachfrageorintierten Entwicklung des ländlichen Finanzsektors in Vietnam," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 39.
    3. Renata Baborska & Emilio Hernandez & Emiliano Magrini & Cristian Morales-Opazo, 2020. "The impact of financial inclusion on rural food security experience: A perspective from low-and middle-income countries," Review of Development Finance Journal, Chartered Institute of Development Finance, vol. 10(2), pages 1-18.
    4. Allen Blackman, 2001. "Why don't Lenders Finance High-Return Technological Change in Developing-Country Agriculture?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(4), pages 1024-1035.
    5. Annabel Vanroose, 2014. "Factors that explain the regional expansion of microfinance institutions in Peru," Working Papers CEB 14-030, ULB -- Universite Libre de Bruxelles.
    6. Lutz G. Arnold & Benedikt Booker, 2012. "Good Intentions Pave the Way to ... the Local Moneylender," Working Papers 126, Bavarian Graduate Program in Economics (BGPE).
    7. Nordjo, R. & Adjasi, C., 2018. "The Impact of Finance on Welfare of Smallholder Farm Household in Ghana," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277142, International Association of Agricultural Economists.
    8. Basu, Karna & Wong, Maisy, 2015. "Evaluating seasonal food storage and credit programs in east Indonesia," Journal of Development Economics, Elsevier, vol. 115(C), pages 200-216.
    9. Rie Makita, 2009. "The visibility of women’s work for poverty reduction: implications from non-crop agricultural income-generating programs in Bangladesh," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 26(4), pages 379-390, December.
    10. Christopher B. Barrett, 2005. "Rural poverty dynamics: development policy implications," Agricultural Economics, International Association of Agricultural Economists, vol. 32(s1), pages 45-60, January.
    11. World Bank, 2002. "Poverty in Bangladesh : Building on Progress," World Bank Publications - Reports 15303, The World Bank Group.
    12. Burfisher, Mary E. & Hanson, Kenneth & Hopkins, Jeffrey & Somwaru, Agapi, 2004. "Global Agriculural Reform and U.S. Agricultural Adjustment Capacity," Conference papers 331303, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    13. Mallick, Debdulal, 2012. "Microfinance and Moneylender Interest Rate: Evidence from Bangladesh," World Development, Elsevier, vol. 40(6), pages 1181-1189.
    14. De Janvry, Alain & Sadoulet, Elisabeth & Murgai, Rinku, 2002. "Rural development and rural policy," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 2, chapter 31, pages 1593-1658, Elsevier.
    15. Richard L Meyer, 2009. "Track Record of Financial Institutions in Assisting the Poor in Asia," Working Papers id:2284, eSocialSciences.
    16. Berg Claudia & Emran Shahe & Shilpi Forhad, 2020. "Microfinance and Moneylenders: Long-run Effects of MFIs on Informal Credit Market in Bangladesh," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 20(3), pages 1-35, July.
    17. Machiko Nissanke, 2002. "Donors' Support for Microcredit as Social Enterprise: A Critical Reappraisal," WIDER Working Paper Series DP2002-127, World Institute for Development Economic Research (UNU-WIDER).
    18. Anna Fruttero & Varun Gauri, 2003. "Location decisions and nongovernmental organization motivation : evidence from rural Bangladesh," Policy Research Working Paper Series 3176, The World Bank.
    19. Zeller, Manfred & Ahmed, Akhter U. & Babu, Suresh Chandra & Broca, Sumiter S. & Diagne, Aliou & Sharma, Manohar, 1996. "Rural finance policies for food security of the poor," FCND discussion papers 11, International Food Policy Research Institute (IFPRI).
    20. Kuiper, Marijke & van Tongeren, Frank, 2004. "Growing Together or Growing Apart? A Village Level Study of the Impact of the Doha Round on Rural China," Conference papers 331250, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

    More about this item

    Keywords

    Financial Economics; Production Economics;

    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:ags:eeaeje:249849. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/eeaa2ea.html .

    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.