The Impacts of Microcredit: Evidence from Ethiopia

Abstract

We use data from a randomized controlled trial conducted in 2003–2006 in rural Amhara and Oromiya (Ethiopia) to study the impacts of increasing access to microfinance on a number of socioeconomic outcomes, including income from agriculture, animal husbandry, nonfarm self-employment, labor supply, schooling and indicators of women's empowerment. We document that despite substantial increases in borrowing in areas assigned to treatment the null of no impact cannot be rejected for a large majority of outcomes. (JEL G21, I20, J13, J16, O13, O16, O18)