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Rethinking the Effects of Microcredit on Household Welfare in Cambodia.

This article analyses the effects of microcredit on household welfare in terms of household expenditure per capita in Cambodia, with data from the Cambodia Socio-Economic Survey carried out in 2014. The analysis describes the effects via formal and informal lending sectors, accounting for endogenous...

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Published in:Journal of Development Studies Vol. 54; no. 9; pp. 1496 - 1513
Main Author: Seng, Kimty
Format: Article
Published: Taylor & Francis Ltd Sep2018
Subjects:
Cambodia
Welfare economics
Consumption (Economics)
Economic history
Microfinance
Moneylenders
Online Access:View this record in EBSCOhost
Summary:This article analyses the effects of microcredit on household welfare in terms of household expenditure per capita in Cambodia, with data from the Cambodia Socio-Economic Survey carried out in 2014. The analysis describes the effects via formal and informal lending sectors, accounting for endogenous selection bias arising from unobserved factors and for structural differences between borrowers and non-borrowers in terms of expenditure functions. The findings suggest that microcredit in both sectors reduces household expenditure.