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Assessing the long-term impact of microcredit on rural poverty: Does the timing and length of participation matter?

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  • Berhane, Guush
  • Gardebroek, Cornelius

Abstract

In recent years, microfinance institutions are seen as beacons of hope to help eradicate poverty through, among others, providing credit to poor rural households. Availability of small but repeated loans is, in the long-term, expected to impact on poverty. However, decades after the introduction of microfinance institutions into many rural areas, there are still questions as to what extent such long-term benefits are realized. This is because evaluating the long-term impact of microfinance provision on household welfare is difficult due to difficulties in controlling for heterogeneities in the borrower pool and subsequent borrowing dynamics.

Suggested Citation

  • Berhane, Guush & Gardebroek, Cornelius, 2012. "Assessing the long-term impact of microcredit on rural poverty: Does the timing and length of participation matter?," ESSP working papers 43, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:esspwp:43
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    References listed on IDEAS

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    Cited by:

    1. Juan José Echavarría, 2018. "Impacto del crédito sobre el agro en Colombia: evidencia del nuevo Censo nacional agropecuario," Chapters, in: Mauricio Villamizar-Villegas & Sara Restrepo-Tamayo & Juan David Hernández-Leal (ed.), Superando barreras: el impacto del crédito en el sector agrario en Colombia, chapter 2, pages 41-72, Banco de la Republica de Colombia.
    2. Farida Farida & Hermanto Siregar & Nunung Nuryartono & Eka Intan K.P, 2016. "An Impact Estimator Using Propensity Score Matching: People’s Business Credit Program to Micro Entrepreneurs in Indonesia," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 20(4), pages 599-615, Autumn.
    3. Tahmasebi, Asghar & Askaribezayeh, Fatemeh, 2021. "Microfinance and social capital formation- a social network analysis approach," Socio-Economic Planning Sciences, Elsevier, vol. 76(C).
    4. Gagandeep Kaur Gill, 2014. "Microfinance and Poor: A Case Study of District Sangrur," International Journal of Regional Development, Macrothink Institute, vol. 1(1), pages 79-87, December.

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