Impact of Access to Microcredit on the Well-being of Households and Poverty Change in Cameroon: 2001-200
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Date
2021-04-19
Authors
Ngah, Otabela Nadège
Journal Title
Journal ISSN
Volume Title
Publisher
AERC
Abstract
Using data from the second and third Cameroonian household surveys, this study
analyzes the relationship between access to microcredit, household well-being, and
poverty change in Cameroon. It uses a combination of two methods of analysis: the
instrumental variable method for controlling the potential endogeneity of access to
increased microcredit by correcting for selection bias; and a method for breaking
down poverty change into intra-growth, intra-redistribution, and inter-sector mobility
components based on Shapley's value. The latter is based on comparison of evidencebased and hypothetical/non-factual distributions. The key findings reveal that access
to microcredit:
(i) significantly and positively affects the level of well-being of households and
financial inclusion, particularly through education;
(ii) has an impact on poverty change and that this effect is brought about by the
redistribution component and primary sector;
(iii) positively and significantly influences the intra-sector redistribution component
of poverty change through the intra-sector growth and mobility components.
Description
Keywords
Microcredit, , Well-being, , Non-factual/hypothetical analysis, , Shapley analysis, , Household surveys, , Cameroon