On the impact of microcredit: Evidence from a randomized intervention in rural Ethiopia

Abstract

We use data from a randomized controlled trial conducted in 2003-2006 in rural Amhara and
\nOromiya (Ethiopia) to study the impacts of the introduction of microfinance in treated communities. 
\nWe document that borrowing increased substantially in locations where the programs 
\nstarted their operations, but we find mixed evidence of improvements in a number of
\nsocio-economic outcomes, including income from agriculture, animal husbandry, non-farm self-employment, 
\nschooling and indicators of women's empowerment.