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Revisiting Microcredit's Poverty†Reducing Promise: Evidence from Cambodia

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  • Kimty Seng

Abstract

This article analyses the effects of microcredit offered by microfinance institutions on household poverty in terms of household food consumption, with data from the Cambodia Socio†Economic Survey conducted in 2014. The analysis is carried with an endogenous switching model accounting for endogenous selection bias resulting from unobservable confounders and for inherent differences between household borrowers and non†borrowers in terms of food consumption functions. The results suggest that households, whether extremely poor, relatively poor or non†poor, which take out microcredit, get worse off in terms of household food consumption per capita. Copyright © 2018 John Wiley & Sons, Ltd.

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  • Kimty Seng, 2018. "Revisiting Microcredit's Poverty†Reducing Promise: Evidence from Cambodia," Journal of International Development, John Wiley & Sons, Ltd., vol. 30(4), pages 615-642, May.
    • Handle: RePEc:wly:jintdv:v:30:y:2018:i:4:p:615-642
    DOI: 10.1002/jid.3336
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    Cited by:

    1. Seng, Kimty, 2021. "The mobile money’s poverty-reducing promise: Evidence from Cambodia," World Development Perspectives, Elsevier, vol. 22(C).
    2. Maryann Bylander & Phasy Res, 2021. "‘If You Fall, Stand Up Again’: The Moral Nature of Financial Literacy in the Global South," Development and Change, International Institute of Social Studies, vol. 52(1), pages 26-53, January.
    3. Zhao Ding & Awudu Abdulai, 2020. "An Analysis of the Factors Influencing Choice of Microcredit Sources and Impact of Participation on Household Income," Journal of International Development, John Wiley & Sons, Ltd., vol. 32(4), pages 505-525, May.
    4. Dina Chhorn, 2018. "Effect of Microfinance on Poverty and Welfare: New Evidence from 9 provinces in Cambodia," Cahiers du GREThA (2007-2019) 2018-12, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    5. Muhammad Akbar & Abdullah & Amjad Naveed & Shabib Haider Syed, 2022. "Does an Improvement in Rural Infrastructure Contribute to Alleviate Poverty in Pakistan? A Spatial Econometric Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 162(1), pages 475-499, July.
    6. Seng, Kimty, 2019. "The Poverty-Reducing Effects of Financial Inclusion: Evidence from Cambodia," MPRA Paper 95726, University Library of Munich, Germany, revised 26 Aug 2019.
    7. Lucas Lopes Ferreira de Souza & Francesca Bassi & Ana Augusta Ferreira de Freitas, 2021. "Longitudinal analysis of microfinance borrowers in Brazil: A dynamic market segmentation," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(6), pages 1063-1083, August.

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