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Microfinance and Rural Household Development

Julius H. Kotir, Franklin Obeng‐Odoom · 2009 · Journal of Developing Societies

Summary. A study of 139 rural households in Ghana's Upper West Region finds that microfinance borrowers divert significant loan portions toward household consumption rather than productive investment. While this generates moderate improvements in household productivity and welfare, microfinance's overall impact on rural community development remains modest. The findings suggest microfinance alone does not reliably reduce poverty or drive rural economic growth.

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Kotir, J. H., & Obeng‐Odoom, F.. (2009). Microfinance and Rural Household Development. Journal of Developing Societies. https://doi.org/10.1177/0169796x0902500104

Details

DOI
10.1177/0169796x0902500104
Countries
Ghana
Regions
Africa
Categories
funding, entrepreneurship
Added
2026-04-28