Show simple item record

Microfinance and the Millennium Development Goals in Pakistan: Impact Assessment using Propensity Score Matching

dc.contributor.authorSununtar Setboonsarng
dc.contributor.authorZiyodullo Parpiev
dc.description.abstractMicrofinance is recognized as contributing both directly and indirectly to the Millennium Development Goals (MDGs). Using data from a survey of clients of a microfinance bank, Khushhali Bank, in 2005, the study revisited the survey data and found that despite the Bank’s strict poverty-targeting program used in client selection and despite the survey’s design to address the selectivity bias, the selectivity bias indeed still existed in the sampled households. Using the Propensity Score-Matching Methods (PSM) to address the selectivity bias, this study found that the lending program contributed significantly to income generation activities such as agricultural production and, in particular, animal raising (MDG 1). However, the impacts on other MDGs—education, health, female empowerment, and so forth—were of limited significance. This is due partly to the fact that 70% of the Bank’s clients in the survey went through only one loan cycle, so the impacts on other MDGs are yet to be realized. Comparing the results to previous impact estimates done by Montgomery on the same dataset using OLS and Logit estimation, the PSM method yielded slightly different results. Although both studies recorded similar microfinance impacts on poverty, the degree of impact was less pronounced when the selectivity bias was addressed.
dc.publisherAsian Development Bank
dc.rightsCC BY 3.0 IGO
dc.titleMicrofinance and the Millennium Development Goals in Pakistan: Impact Assessment using Propensity Score Matching
dc.typeWorking Papers
dc.subject.expertEconomic Development
dc.subject.expertEconomic Infrastructure
dc.subject.expertEconomic Policies
dc.subject.expertRegional Economic Development
dc.subject.expertMicrofinance Programs
dc.subject.expertPublic Finance
dc.subject.expertLocal Financing
dc.subject.expertFinancial Stability
dc.subject.expertFinancial Sector Regulation
dc.subject.adbFinancial aid
dc.subject.adbEconomies in transition
dc.subject.adbLocal Finance
dc.subject.adbLocal Government
dc.subject.adbInsurance Companies
dc.subject.adbSocial Equity
dc.subject.naturalSocial responsibility of business
dc.subject.naturalPersonal budgets
dc.subject.naturalCost and standard of living
dc.subject.naturalBank accounts
dc.subject.naturalCredit control
dc.subject.naturalRegulatory reform
dc.subject.naturalBanks and banking
dc.title.seriesADBI Working Paper Series
dc.contributor.imprintAsian Development Bank
oar.adminregionCentral West Asia Region
oar.authorSetboonsarng, Sununtar
oar.authorParpiev, Ziyodullo

Files in this item


This item appears in the following Collection(s)

  • ADBI Working Papers
    The Asian Development Bank Institute (ADBI) Working Paper series is a continuation of the formerly named Discussion Paper series which began in January 2003. The numbering of the papers continued without interruption or change. ADBI was established in 1997 in Tokyo, Japan, to help build capacity, skills, and knowledge related to poverty reduction and other areas that support long-term growth and competitiveness in developing economies in Asia and the Pacific.

Show simple item record

Users also downloaded