Evaluating the economic impact of a special credit programme: KIK/KMKP in Indonesia

Bolnick, Bruce R.; Nelson, Eric R.

doi:10.1080/00220389008422153

Cited by 17 publications

(8 citation statements)

References 5 publications

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“…4 Hulme and Mosley (1996) and Johnston and Morduch (2008) argue that collateral ownership is not necessarily a significant constraint on the poor when they need to borrow from commercial banks within Indonesia. 5 Bolnick and Nelson (1990) and Hulme and Mosley (1996) are among the few exceptions. 6 For an excellent review of these papers, see Armendáriz de Aghion and Morduch (2005), Karlan and Goldberg (2007), and Kono and Takahashi (2010).…”

mentioning

confidence: 98%

The Short‐term Poverty Impact of Small‐scale, Collateral‐free Microcredit in Indonesia: A Matching Estimator Approach

Takahashi

Higashikata

Tsukada

2010

The Developing Economies

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Indonesian microfinance is primarily operated by for-profit commercial banks, characterized by large-scale loans that require collateral. In 2003, the largest nongovernmental organization in the country introduced much smaller-scale loans without a collateral requirement. This scheme is commercialized but potentially more suited to the credit demands of the poor. Applying propensity score matching with the difference-indifference method, this paper examines whether the emerging microcredit scheme has been successful in targeting and improving the welfare of the poor in the one year following loan disbursement. The results show that although collateral ownership is not an important determinant of participation, relatively wealthier families gain access to microcredit. The impact of microcredit on various household outcomes is generally statistically insignificant, except for sales of nonfarm enterprises for the nonpoor and schooling expenditures for the poor. This implies that the microcredit scheme under study might not have an immediate impact on poverty alleviation.

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mentioning

confidence: 98%

The Short‐term Poverty Impact of Small‐scale, Collateral‐free Microcredit in Indonesia: A Matching Estimator Approach

Takahashi

Higashikata

Tsukada

2010

The Developing Economies

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“…Their research has concluded that the analyst must control for the systematic differences-whether observed or unobserved-between clients and non-clients. Rigorous attempts to do this for DFIs include, among others, Montgomery, Johnson, and Faisal (2000); Amin, Rai, and Topa (1999); Coleman (1999); McKnelly and Dunford, (1998); Mosley and Hulme (1998); Morduch (1998a); Pitt and Khandker (1998); Smith and Jain, (1998) ;Carter and Olinto (1996);McKernan, (1996); Sial and Carter (1996); Lapar (1995); Bolnick and Nelson (1990); Feder et al, (1990); and Carter (1989).…”

Section: How Can Society Measure the Benefits Of Dfis?mentioning

confidence: 99%

Development Finance Institutions

Yaron¹,

Schreiner²

2001

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“…There is no persuasive evidence that these programs have had a beneficial effect on SSI (Bolnick and Nelson 1990). Indeed, to the extent that these and other initiatives consist primarily of moral exhortations from the government, the motive for their introduction is principally political.…”

Section: Indonesiamentioning

confidence: 99%

Small‐Scale Industry in the Asian‐Pacific Region

Berry

Mazumdar²

1991

Asian-Pac Economic Lit

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Small‐scale industry has been important in the successful development of many of the economies of East and Southeast Asia, both in cases like Japan, Korea and Taiwan where import‐substitution preceeded and/or accompanied the manufactured exporting phase, and in Hang Kong, the only essentially laissez faire economy in the region. An important general characteristic of the small‐scale sector, and one long commented upon in the Japanese case, is the prevalence of subcontracting relationships either with larger manufacturing firms or with traders. There is considerable evidence of economic efficiency in the sector, especially perhaps in the medium‐size range. Although some types of policy support appear to have paid off well, others appear not to have, so it is clear that such support must be both well thought out and carefully implemented if it is to have the hoped‐for result.

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Evaluating the economic impact of a special credit programme: KIK/KMKP in Indonesia

Cited by 17 publications

References 5 publications

The Short‐term Poverty Impact of Small‐scale, Collateral‐free Microcredit in Indonesia: A Matching Estimator Approach

The Short‐term Poverty Impact of Small‐scale, Collateral‐free Microcredit in Indonesia: A Matching Estimator Approach

Development Finance Institutions

Small‐Scale Industry in the Asian‐Pacific Region

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