Comparative Analysis on the Economic Impacts of Clientas and Member Based Microfinance Institutions in Ethiopia

Habtamu Getnet Altasseb

Authors

Habtamu Getnet Altasseb

Keywords:

household income, the daily per capital expenditure, microcredit, outreach and savings

Abstract

Several evidences in the developing world argued that access to finance can help to substantially reduce poverty. Contrarily, proponents criticized that MC does not reach the poorest of the poor or that the poorest are deliberately excluded from the MC programs. Despite the apparent success and popularity of microfinance, no clear evidence yet exists that microfinance programs have positive impacts on the life of the poor. The main aim of this study is therefore, to assess the relative economic contributions made through the CBMFIs and SACCOs. The study applied DID approaches comprising of the FE and RE models and the t test statistics taken part from analysis of varying cross-sectional and panel data collected through Questionnaires and structured interview. To fulfill the stated research objectives, the researcher considered the income levels of individuals, of households and of businesses, as well as savings levels, expenditure, and asset accumulation as outcome indicators.

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Comparative Analysis on the Economic Impacts of Clientas and Member Based Microfinance Institutions in Ethiopia. (2015). Global Journal of Management and Business Research, 15(32), 31-43. https://journalofbusiness.org/index.php/GJMBR/article/view/

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