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Empowering women through microcredit in Djibouti

Author

Listed:
  • Dina Chhorn

    (BSE - Bordeaux Sciences Economiques - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique)

  • Mazhar Mughal

    (Centre de recherche de l'ESC Pau - ESC PAU - Ecole Supérieure de Commerce, Pau Business School)

  • Mohamed Abdallah Ali

    (Centre de recherche de l'ESC Pau - ESC PAU - Ecole Supérieure de Commerce, Pau Business School)

Abstract

In this study, we construct original measures ofwomen's empowerment in economic, social, and inter-personal dimensions to estimate the effect ofmicrocredit on women's empowerment in Djibouti.Using survey data covering 2060 Djiboutian house-holds, we examine the extent to which access tomicrocredit, the amount of loans obtained, and theirduration modify women's status at home. We employan instrumental variables strategy and develop threeinstruments: (i) household's membership of a savingand credit cooperative, (ii) the availability of formalbanks at the village or community level, and (iii) theavailability of formal cooperatives at the village or com-munity level. We find that microcredit has positive andsignificant effects on women's autonomy, but theseeffects become significantly negative as the number ofloans taken out increases and as the length of timespent in the program rises. Women from householdswith access to micro-loans are respectively 45.0%,41.4%, and 15.7% more likely to be economically,socially, and interpersonally empowered. The results ofthe study are robust across specifications and econo-metric techniques employed and confirm the generallymixed socioeconomic effects of microcredit programs

Suggested Citation

  • Dina Chhorn & Mazhar Mughal & Mohamed Abdallah Ali, 2024. "Empowering women through microcredit in Djibouti," Post-Print hal-04514464, HAL.
    • Handle: RePEc:hal:journl:hal-04514464
    DOI: 10.1111/rode.13091
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