Microfinance in Northeast Thailand: Who Benefits and How Much?

This paper evaluates the outreach and impact of two micro_nance programs in Thailand, controlling for endogenous self-selection and program placement. Results indicate that the wealthier villagers are signi_cantly more likely to participate than the poor. Moreover, the wealthiest often become program committee members and borrow substantially more than rank-and-_le members. However, local information on creditworthiness is also used to select members. The programs positively a_ect household welfare for committee members, but impact is insigni_cant for rank-and-_le members. Policy recommendations include vigilance in targeting the poor, publicly disseminating the program rules and purpose, and introducing and enforcing eligibility criteria.

Coleman (2006)Rural/Pipeline design, panel data of participating and non-participating HH and moderate robustness.Credit. Some savings, which may be used to provide loans.Positive impact on savings and business revenues of wealthier women members (no impact on poorer women). Increased business sales among wealthier members (no impact on poorer women). Wealthier women were more likely to participate in village banks than poor women (mistargeting).http://graduateinstitute.ch/webdav/site/developpement/shared/developpement/cours...445 households. Most engage in small-scale agriculture (91.3% of women and 90.4% of men surveyed listed farming as primary or secondary occupation).