Working Paper: CEPR ID: DP10696
Authors: Nargiza Alimukhamedova; Randall K. Filer; Jan Hanousek
Abstract: 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.
Keywords: geographic access; microcredit; microfinance institutions
JEL Codes: C34; O16
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Geographic proximity to MFIs (G21) | Larger business revenues (L25) |
| Geographic proximity to MFIs (G21) | Larger business profits (L25) |
| Geographic proximity to MFIs (G21) | Higher number of employees (M51) |
| Geographic proximity to MFIs (G21) | Higher levels of consumption (E21) |
| Geographic proximity to MFIs (G21) | Higher savings (D14) |
| Geographic proximity to MFIs (G21) | Decreased expenditures on education (H52) |