The importance of geographic access for the impact of microfinance
Nargiza AlimukhamedovaWestminster International University in Tashkent UzbekistanRandall K. FilerDepartment of Economics Hunter College and the Graduate Center The City University of New YorkJan HanousekCERGE‐EI Charles University and the Czech Academy of Sciences Prague Czech Republic
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Abstract
Abstract The geographic distance between a household and financial institutions may constitute a significant obstacle to achieving the benefits of modern financial institutions. We measure the impact of distance‐related access to microcredits in Uzbekistan. Residents living closer to microfinance institutions are propensity score matched to those further away using both household and village characteristics. Households located nearer to microfinance institutions have larger businesses in terms of income, profits and employees than similar households located further away. In addition, they spend more on most forms of consumption and have greater savings.
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