Contents

The Impact of informal credit on household welfare

the case of rural Ethiopia

TONCH, Habitamu Asifawu

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Abstract

This study work was based on the idea of “consumption smoothing theory” which was demonstrated based on “life-cycle model of consumption” and the main aim of the study was, analyzing the effect of informal credit on household welfare. Following two stage least square regression analysis by taking average number of informal borrowing participant households within community as an instrumental variable for informal credit in order to avoid endogeneity, the study found that informal credit and households welfare have positive relationship. Each thousand Birr 1 received in the form of informal credit improves welfare expenditure of household by about 4.3 percentage, ceteris paribus. This result was consistent with pervious works of (Kati.S, 2010; Cuong.V.N & Marrit.vanden.B, 2011).

Advisors
Sohn, Wook
Department
KDI School, Master of Public Policy
Issue Date
2020
Publisher
KDI School
Description
Thesis(Master) --KDI School:Master of Public Policy,2020
Keywords
Rural credit--Ethiopia.; Households--Ethiopia.
Contents
1. Introduction

2. Literature Review

3. Data and Methodology

4. Descriptive Statistics, Result Presentation and Discussion

5. Checking Robustness of the result

6. Conclusion and Recommendation
Pages
ii, 43 p
URI
https://archives.kdischool.ac.kr/handle/11125/34410
Type
Thesis
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