Premium
Revisiting Microcredit's Poverty‐Reducing Promise: Evidence from Cambodia
Author(s) -
Seng Kimty
Publication year - 2018
Publication title -
journal of international development
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.533
H-Index - 66
eISSN - 1099-1328
pISSN - 0954-1748
DOI - 10.1002/jid.3336
Subject(s) - microfinance , unobservable , poverty , consumption (sociology) , economics , per capita , selection bias , food consumption , demographic economics , development economics , public economics , economic growth , agricultural economics , econometrics , medicine , social science , population , pathology , sociology , demography
This article analyses the effects of microcredit offered by microfinance institutions on household poverty in terms of household food consumption, with data from the Cambodia Socio‐Economic Survey conducted in 2014. The analysis is carried with an endogenous switching model accounting for endogenous selection bias resulting from unobservable confounders and for inherent differences between household borrowers and non‐borrowers in terms of food consumption functions. The results suggest that households, whether extremely poor, relatively poor or non‐poor, which take out microcredit, get worse off in terms of household food consumption per capita. Copyright © 2018 John Wiley & Sons, Ltd.