Journal article Open Access
Micro-loans, macro-impacts: Examining the reverberating gains for Habru Woreda's small-scale agrarian households
Awoke, Agerwork Jejaw; Tefera, Abate Belaye; Ayinewa, Yigermal Maru
Abstract
Background
Most people in third-world countries are impoverished and rely on small-holder farming as a source of income. Due to a lack of working capital to diversify their sources of income and acquire new sources, farmers are highly dependent on financial institutions to access microcredit.
Method
This study utilized logistic regression and propensity score matching methods to analyze the primary data collected from a sample of 385 household heads.
Results
The Estimation results of the study shows that Gender, age, family size, and education, access to irrigation, extension services, dependency ratio, and distance to credit sources were among the significant determinants of access to microcredit service.
Conclusion
Although microcredit led to an increase in household spending, real asset holdings did not improve. In addition to the need for
supplementary interventions like financial literacy training and asset building programs to encourage asset accumulation among these small-scale agrarian households, high interest rates and repayment burdens are blamed for this uneven result.
| Name | Size | |
|---|---|---|
|
Ager (Micro loans).pdf
md5:eab399036929130a6d30233f6e367fd8 |
541.6 kB | Download |
| All versions | This version | |
|---|---|---|
| Views | 0 | 0 |
| Downloads | 0 | 0 |
| Data volume | 0 Bytes | 0 Bytes |
| Unique views | 0 | 0 |
| Unique downloads | 0 | 0 |
- Publication date:
- October 17, 2024
- DOI:
-
- Keyword(s):
- Microcredit utilization, Household assets, Small-scale agrarian households, Propensity score matching, Habru woreda
- License (for files):
- Creative Commons Attribution