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Gendered Impact of Microcredit in Mali: An Evaluation by Propensity Score Matching

Author

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  • Koloma, Yaya
  • Alia, Hayyan
Abstract
The objective of the paper is to rigorously test whether the potential effects of microcredit on poverty reduction are more significant for female beneficiaries than for male in Mali. The dataset we use comes from surveys conducted in 2007–2008 in Mali. It covers a large sample that compares 2400 microfinance client households, of which around 70% are microcredit beneficiaries. To do this, we perform the propensity score matching (PSM) method. Statistically, the study shows that older women have more chance of getting loans than younger women. In terms of amounts (borrowed and saved), men outweigh women. However, regarding loan amounts, women seem to use greater proportions of the loan and are more committed to using the money for income-generating purposes. At the same time, the level of savings relative to the loan amount is the same for the two genders. From an econometric perspective, this research confirms that microfinance in Mali has a positive impact on poverty alleviation in total, and higher for female than for male beneficiaries. The findings, therefore, present the importance of the length of the membership with the MFI for women. Based on these results, we can interpret this as meaning that women show efficiency in using loans for economic activity but rather in the longer term than in the short term compared to men. In light of these results, microcredit in the case of Mali seems to be effective in alleviating poverty for both men and women. In term of policy recommendations, MFIs should target men in rural areas, although this may lead to higher distribution costs in the short term, in the long term it may reduce risk and lead to higher profits. The government in partnership with donors should provide support to women entrepreneurs so that their initial learning curve is enhanced and enable them to benefit from microfinance loans, even in the short term.

Suggested Citation

  • Koloma, Yaya & Alia, Hayyan, 2014. "Gendered Impact of Microcredit in Mali: An Evaluation by Propensity Score Matching," MPRA Paper 110202, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:110202
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    References listed on IDEAS

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    Cited by:

    1. Elikplimi K. Agbloyor & Simplice A. Asongu & Peter Muriu, 2021. "Sustainability, Growth and Impact of MFIs in Africa," Working Papers of the African Governance and Development Institute. 21/083, African Governance and Development Institute..
    2. Yaya Koloma & Zaka Ratsimalahelo, 2015. "Jeunes, accès au microcrédit et performance des microentreprises: une évidence au Mali," Working Papers hal-01377920, HAL.
    3. Serge Valant Gandja & Marinette Kamaha, 2024. "The Determinants of Entrepreneurial Success: An Application to Micro-Enterprises Financed by Microcredit in France," IJFS, MDPI, vol. 12(3), pages 1-16, August.
    4. Koloma, Yaya, 2019. "Microfinance et réduction de la pauvreté selon le genre au Mali : un réexamen des données de 2007-2008 [Microfinance and Poverty Reduction by Gender in Mali: A Review of 2007-2008 data]," MPRA Paper 94745, University Library of Munich, Germany.
    5. Salvador Cruz Rambaud & Joaquín López Pascual & Roberto Moro-Visconti & Emilio M. Santandreu, 2022. "Should gender be a determinant factor for granting crowdfunded microloans?," Palgrave Communications, Palgrave Macmillan, vol. 9(1), pages 1-13, December.
    6. Arvind Ashta & Surender Mor, 2022. "Is Microcredit a Reverse Innovation?," FIIB Business Review, , vol. 11(2), pages 225-234, June.
    7. Mohamedou Bouasria & Arvind Ashta & Zaka Ratsimalahelo, 2020. "Bottlenecks to Financial Development, Financial Inclusion, and Microfinance: A Case Study of Mauritania," JRFM, MDPI, vol. 13(10), pages 1-28, October.

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    More about this item

    Keywords

    Microfinance; Gender; Poverty; Propensity score matching; Mali;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • J1 - Labor and Demographic Economics - - Demographic Economics

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