What is it about?
Increased outreach by microfinance institutions can increase welfare in countries. We find that such increased access increases income and consumption growth.
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Why is it important?
Our results confirm that microfinance outreach can enhance aggregate welfare. Mainly, the average loan balance per borrower and the percentage of women borrowers positively impact aggregate welfare. Additionally, outreach affects consumption growth strongly. Therefore, this study upholds the incorporation of microfinance into policies targeting aggregate welfare and economic development.
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This page is a summary of: Microfinance outreach and aggregate welfare, Journal of International Development, December 2021, Wiley, DOI: 10.1002/jid.3616.
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