Evaluating Impact of Microcredit in Bolivia: Evidence of Individual Productive Credit – Productive Development Bank
DOI:
https://doi.org/10.35319/lajed.20150377Keywords:
Impact evaluation, microcredits, microfinanceAbstract
This paper presents the impact evaluation of Crédito Productivo Individual from Banco de Desarrollo Productivo S.A.M, government secondtier bank which channels resources toward productive activities in Bolivia. This financial product is specifically directed to micro and small enterprises in the productive sector, concentrating mosdy in the agriculture and manufacturing. Taking into account differences in treatment received by beneficiaries, we use multiple control groups, assuming unconfoundedness, to estimate impact on family and production outcomes. The results show us that the main effects of credit are observed in manufacturing sector. In this sector we find an impact between 23% and 28% on machinery investment levels, which could be the explanation for an observed impact higher than 20% on production value. On the other hand, we only find effects in reducing input costs, suggesting that the greatest impact in the agricultural sector could be the opening of financial products to this group of producers.Downloads
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