Education Commons^™

Effects Of Microfinance Penetration Rates On Education Participation, Samuel W. Martinez

WWU Honors College Senior Projects

Microfinance, or the extension of financial services to low-income individuals unserved or underserved by traditional financial institutions, has been championed as a method of reducing poverty and creating social change, especially in developing countries. However, empirical studies examining the effects of microcredit programs have found mixed results as to the success of these loans. This study attempts to determine the impact that the presence of microfinance institutions in a country has on education participation rates, specifically examining country- level World Bank data over a 10-year period. Regression results for this data suggest positive effects of microfinance penetration on secondary education …