Microfinance outreach and aggregate welfare

This study investigates the impact of microfinance outreach on aggregate economic well‐being. We specifically examine the effect of microfinance outreach on aggregate welfare, as measured by income and household consumption growth, across 108 countries over the period 2005–2015. Our empirical result...

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Bibliographic Details
Published in:Journal of international development 2022-04, Vol.34 (3), p.652-669
Main Authors: Ahmed, Ishraq, Kitenge, Erick
Format: Article
Language:English
Subjects:
aggregate welfare
Aptitudes
Consumption
Economic development
Economic well being
Microfinance
outreach
Outreach programs
Welfare
Women
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Summary:This study investigates the impact of microfinance outreach on aggregate economic well‐being. We specifically examine the effect of microfinance outreach on aggregate welfare, as measured by income and household consumption growth, across 108 countries over the period 2005–2015. Our empirical results confirm the aptitude of microfinance outreach to enhance aggregate welfare. Mainly, the average loan balance per borrower and the percentage of women borrowers positively impacted aggregate welfare. Additionally, outreach affects consumption growth strongly. Therefore, this study upholds the incorporation of microfinance into policies targeting aggregate welfare and economic development.
ISSN:0954-1748
1099-1328
DOI:10.1002/jid.3616