nep-mfd New Economics Papers
on Microfinance
Issue of 2013‒06‒30
two papers chosen by
Olivier Dagnelie
Instituto de Analisis Economico, CSIC

  1. Win Some Lose Some? Evidence from a Randomized Microcredit Program Placement Experiment by Compartamos Banco By Angelucci, Manuela; Karlan, Dean; Zinman, Jonathan
  2. Essays on banking and finance in China. By Lu, L.

  1. By: Angelucci, Manuela (University of Michigan); Karlan, Dean (Yale University); Zinman, Jonathan (Dartmouth College)
    Abstract: Theory and evidence have raised concerns that microcredit does more harm than good, particularly when offered at high interest rates. We use a clustered randomized trial, and household surveys of eligible borrowers and their businesses, to estimate impacts from an expansion of group lending at 110% APR by the largest microlender in Mexico. Average effects on a rich set of outcomes measured 18-34 months post-expansion suggest some good and little harm. Other estimators identify heterogeneous treatment effects and effects on outcome distributions, but again yield little support for the hypothesis that microcredit causes harm.
    Keywords: microcredit, microcredit impact, microentrepreneurship, Compartamos Banco
    JEL: D12 D22 G21 O12
    Date: 2013–06
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp7439&r=mfd
  2. By: Lu, L. (Tilburg University)
    Abstract: Abstract: The Chinese economy has grown at a spectacular speed during the past three decades while the financial system is not well developed in China. On the one hand, the informal financing channels, i.e. borrowing from family members, friends, moneylenders, trade credit, etc., may provide proper financing for the firms in China. On the other hand, the increasing intensity of banking competition may also enhance the access to finance in China. Chapter 1 introduces the Chinese economy; Chapter 2 shows the effect of trade credit on the export in China; Chapter 3 shows the effect of informal finance on the microenterprises in rural China; Chapter 4 shows the effect of co-funding on the growth of private firms in China; Chapter 5 shows the effect of the banking competition on alleviating the credit constraints of Chinese SMEs. The thesis basically supports the enhancing role of informal finance and the necessity of increasing the banking competition in China.
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:ner:tilbur:urn:nbn:nl:ui:12-5906730&r=mfd

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