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Improving access to microcredit in Benin: are the poor and women benefiting?

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  • Djossou, Gbètoton Nadège Adèle
  • Monwanou, Djohodo Ines
  • Novignon, Jacob

Abstract

In February 2007, the Government of Benin set up a Microcredit Program to support the Poor (MPP). The main objective of this programme was to alleviate household poverty and particularly women through easy access to microcredit to start their own microenterprises. The objective of this paper was to assess the impact of the MPP on poverty and women empowerment in Benin. Our empirical strategy relies on comparing socioeconomic outcomes (poverty and gender inequality index) of individual with access to MPP and those without. Using data from the Beninese Household Survey (EMICoV: Enquête Modulaire Intégrée sur les Conditions de vie des Ménages) conducted by the National Institute of Statistics in 2011, we estimate the average treatment effect of the MPP using Propensity Score Matching (PSM). To measure poverty and gender inequality, we construct a composite indicator using various dimensions of wellbeing (e.g. Education, health, assets etc.). In general, the results showed a positive and significant impact of MPP on poverty. Women empowerment in health care access and assets ownership were positively impacted by MPP access. The results encourage further expansion of the MPP and to ensure effective as well as efficient implementation of the programme.

Suggested Citation

  • Djossou, Gbètoton Nadège Adèle & Monwanou, Djohodo Ines & Novignon, Jacob, 2016. "Improving access to microcredit in Benin: are the poor and women benefiting?," MPRA Paper 72219, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:72219
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    References listed on IDEAS

    as
    1. Diana Fletschner, 2008. "Women's Access to Credit: Does It Matter for Household Efficiency?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(3), pages 669-683.
    2. Fletschner, Diana, 2009. "Rural Women's Access to Credit: Market Imperfections and Intrahousehold Dynamics," World Development, Elsevier, vol. 37(3), pages 618-631, March.
    3. Shahidur R. Khandker & Hussain A. Samad & Rubaba Ali, 2013. "Does Access to Finance Matter in Microenterprise Growth? Evidence from Bangladesh," Working Papers 15, Institute of Microfinance (InM).
    4. Shahidur R. Khandker, 2005. "Microfinance and Poverty: Evidence Using Panel Data from Bangladesh," The World Bank Economic Review, World Bank, vol. 19(2), pages 263-286.
    5. Katsushi Imai & Thankom Arun, 2008. "Does Microfinance Reduce Poverty in India?," Economics Discussion Paper Series 0814, Economics, The University of Manchester.
    6. Thankom Arun & Katsushi Imai & Frances Sinha, 2006. "Does the Microfinance Reduce Poverty in India? Propensity Score Matching based on a National-level Household Data," Economics Discussion Paper Series 0625, Economics, The University of Manchester.
    7. Lin, Zhengxi & Picot, Garnett & Compton, Janice, 2000. "The Entry and Exit Dynamics of Self-Employment in Canada," Small Business Economics, Springer, vol. 15(2), pages 105-125, September.
    8. Pia Arenius & Maria Minniti, 2005. "Perceptual Variables and Nascent Entrepreneurship," Small Business Economics, Springer, vol. 24(3), pages 233-247, February.
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    Cited by:

    1. Gbetoton Nadege Djossou & Gilles Quentin Kane & Jacob Novignon, 2017. "Is Growth Pro‐Poor in Benin? Evidence Using a Multidimensional Measure of Poverty," Poverty & Public Policy, John Wiley & Sons, vol. 9(4), pages 426-443, December.

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    More about this item

    Keywords

    Microcredit; poverty; Women empowerment; Propensity Matching Score; Benin;
    All these keywords.

    JEL classification:

    • D6 - Microeconomics - - Welfare Economics
    • D60 - Microeconomics - - Welfare Economics - - - General
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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