Microfinance Can Raise Incomes: Evidence from a Randomized Controlled Trial in the People’s Republic of China
This study finds that a microcredit program in poor rural areas of the People’s Republic of China (PRC) significantly increases household income and reduces poverty. The authors examine the role of program design and contextual factors.
Download(Free : 2 available)
This systematic evaluation of the PRC’s large-scale village banking program uses a randomized controlled trial. Its findings contrast with those of recent RCT-based studies in different parts of the world that found no evidence of significant increases in income from microcredit interventions. The authors explore possible explanations for why the estimated impacts may be greater in the PRC. These factors include larger loan size, lump sum repayments, lower interest rates, less access to formal credit before the program, and greater returns from credit-constrained off-farm employment opportunities.
Contents
- Introduction
- The Program and Experimental Design
- Methods
- Results
- Comparison of Microcredit Programs
- Heterogeneity of Treatment Impacts
- Conclusion
Additional Details
- Economics
- Finance sector development
- Finance sector reform
- Small and medium enterprise (SME) financing
- China, People's Republic of
- 44
- 8.5 x 11
- WPS250409-2
- 2313-6537 (print)
- 2313-6545 (PDF)
Also in this Series
- Learning materials Guidelines, toolkits, and other "how-to" development resources
- Books Substantial publications assigned ISBNs
- Papers and Briefs ADB-researched working papers
- Conference Proceedings Papers or presentations at ADB and development events
- Policies, Strategies, and Plans Rules and strategies for ADB operations
- Board Documents Documents produced by, or submitted to, the ADB Board of Directors
- Financing Documents Describes funds and financing arrangements
- Reports Highlights of ADB's sector or thematic work
- Serials Magazines and journals exploring development issues
- Brochures and Flyers Brief topical policy issues, Country Fact sheets and statistics
- Statutory Reports and Official Records ADB records and annual reports
- Country Planning Documents Describes country operations or strategies in ADB members
- Contracts and Agreements Memoranda between ADB and other organizations
