Does microfinance reduce rural poverty? Evidence based on household panel data from Northern Ethiopia

Evidence on the long‐term impacts of microfinance credit is scarce. We use a unique four‐round panel dataset on farm households in northern Ethiopia that had access to microfinance, observed on two key poverty indicators: household consumption and housing improvements. Fixed‐effects and random trend...

Descripción completa

Detalles Bibliográficos
Autores principales: Berhane, Guush, Gardebroek, Cornelis
Formato: Journal Article
Lenguaje:Inglés
Publicado: Wiley 2011
Materias:
Acceso en línea:https://hdl.handle.net/10568/154287
_version_ 1855525507270967296
author Berhane, Guush
Gardebroek, Cornelis
author_browse Berhane, Guush
Gardebroek, Cornelis
author_facet Berhane, Guush
Gardebroek, Cornelis
author_sort Berhane, Guush
collection Repository of Agricultural Research Outputs (CGSpace)
description Evidence on the long‐term impacts of microfinance credit is scarce. We use a unique four‐round panel dataset on farm households in northern Ethiopia that had access to microfinance, observed on two key poverty indicators: household consumption and housing improvements. Fixed‐effects and random trend models are used to reduce potential selection biases due to time‐invariant unobserved heterogeneity and individual trends therein. Results show that borrowing indeed causally increased consumption and housing improvements. A flexible specification that takes into account repeated borrowings also suggests that borrowing has cumulative long‐term effects on these outcomes, implying that short‐term impact estimates may underestimate credit effects.
format Journal Article
id CGSpace154287
institution CGIAR Consortium
language Inglés
publishDate 2011
publishDateRange 2011
publishDateSort 2011
publisher Wiley
publisherStr Wiley
record_format dspace
spelling CGSpace1542872025-03-11T12:14:31Z Does microfinance reduce rural poverty? Evidence based on household panel data from Northern Ethiopia Berhane, Guush Gardebroek, Cornelis rural poverty microfinance data impact models Evidence on the long‐term impacts of microfinance credit is scarce. We use a unique four‐round panel dataset on farm households in northern Ethiopia that had access to microfinance, observed on two key poverty indicators: household consumption and housing improvements. Fixed‐effects and random trend models are used to reduce potential selection biases due to time‐invariant unobserved heterogeneity and individual trends therein. Results show that borrowing indeed causally increased consumption and housing improvements. A flexible specification that takes into account repeated borrowings also suggests that borrowing has cumulative long‐term effects on these outcomes, implying that short‐term impact estimates may underestimate credit effects. 2011-01 2024-10-01T14:00:38Z 2024-10-01T14:00:38Z Journal Article https://hdl.handle.net/10568/154287 en Limited Access Wiley Berhane, Guush; Gardebroek, Cornelis. 2011. Does microfinance reduce rural poverty? Evidence based on household panel data from Northern Ethiopia. American Journal of Agricultural Economics 93(1): 43-55. https://doi.org/10.1093/ajae/aaq126
spellingShingle rural poverty
microfinance
data
impact
models
Berhane, Guush
Gardebroek, Cornelis
Does microfinance reduce rural poverty? Evidence based on household panel data from Northern Ethiopia
title Does microfinance reduce rural poverty? Evidence based on household panel data from Northern Ethiopia
title_full Does microfinance reduce rural poverty? Evidence based on household panel data from Northern Ethiopia
title_fullStr Does microfinance reduce rural poverty? Evidence based on household panel data from Northern Ethiopia
title_full_unstemmed Does microfinance reduce rural poverty? Evidence based on household panel data from Northern Ethiopia
title_short Does microfinance reduce rural poverty? Evidence based on household panel data from Northern Ethiopia
title_sort does microfinance reduce rural poverty evidence based on household panel data from northern ethiopia
topic rural poverty
microfinance
data
impact
models
url https://hdl.handle.net/10568/154287
work_keys_str_mv AT berhaneguush doesmicrofinancereduceruralpovertyevidencebasedonhouseholdpaneldatafromnorthernethiopia
AT gardebroekcornelis doesmicrofinancereduceruralpovertyevidencebasedonhouseholdpaneldatafromnorthernethiopia