A Macro Perspective On Microfinance And Wellbeing

Abstract: In this paper we aim to test macro impact of microfinance on wellbeing, for this purpose we use a large dataset covering a sample of 91 developing countries. Using an at mean OLS model and a panel data model for the period 2000-2015, we test the effect of microfinance on three dimensions which are the headcount poverty ratio, consumption and education. our finding from the first model confirms the hypothesis that microfinance has a positive impact on the monetary wellbeing of the poor and on enrollment at school .However the fixed effect model results prove that there is a negative impact of microfinance on poverty but the same results as the OLS model for the consumption and education proxies has been found.