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The Importance of Geographic Access for the Impact of Microfinance

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  • Nargiza Alimukhamedova
  • Randall K. Filer
  • Jan Hanousek

Abstract

The geographic distance between a household and financial institutions may constitute a significant obstacle to achieving the benefits of modern financial institutions. We measure the impact of distance-related access to microcredits in Uzbekistan. Residents living closer to microfinance institutions are propensity score matched to those further away using both household and village characteristics. Households located nearer to microfinance institutions have larger businesses in terms of income, profits and employees than similar households located further away. In addition, they spend more on most forms of consumption and have greater savings.

Suggested Citation

  • Nargiza Alimukhamedova & Randall K. Filer & Jan Hanousek, 2016. "The Importance of Geographic Access for the Impact of Microfinance," CERGE-EI Working Papers wp577, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    • Handle: RePEc:cer:papers:wp577
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    References listed on IDEAS

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    Cited by:

    1. Wonhyung Lee & Nurul Widyaningrum, 2019. "Multidimensional access to financial services: Insights from Indonesia," Progress in Development Studies, , vol. 19(1), pages 21-35, January.

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    More about this item

    Keywords

    microcredit; microfinance institutions; geographic access;
    All these keywords.

    JEL classification:

    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models

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