DP10696 The Importance of Geographic Access for the Impact of Microfinance

Author(s): Nargiza Alimukhamedova, Randall K Filer, Jan Hanousek
Publication Date: July 2015
Keyword(s): geographic access, microcredit, microfinance institutions
JEL(s): C34, O16
Programme Areas: Labour Economics, Financial Economics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=10696

The geographic distance between a household and financial institutions may constitute a significant obstacle to achieving the benefits of modern financial institutions. We measure the impact of improved distance-related access to microcredits in Uzbekistan. Residents living closer to microfinance institutions are propensity score matched to those further away using both household and village characteristics. Households located closer to microfinance institutions have larger businesses in terms of income, profits and employees than similar households located further away. Similarly, they spend more on most forms of consumption and have greater savings.