Abstract | This study examines whether household access to microfinance reduces poverty in Pakistan and, if so, how and to what extent. It draws on primary empirical data gathered by interviewing 1,132 households in which both borrower and non-borrower households were interviewed in 2008-9. Sample selection biases have been controlled partially by using propensity score matching. The study reveals that microfinance programmes had a positive impact on the participating households. Poverty-reducing effects were observed on a number of indicators, including expenditure on healthcare, clothing, household income, and on certain dwelling characteristics, such as water supply and quality of roofing and walls. |
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