Where is the ‘Plus’ in ‘Credit-Plus’? The Case of Chiapas, Mexico

Olga Biosca Artinano, Pamela Lenton, Paul Mosley

Research output: Contribution to journalArticle

Abstract

It has become common to try and increase the effectiveness of microfinance programmes by adding supplementary services to the financial product. However, the added value accruing from this ‘credit-plus’ approach has been little analysed. We hypothesise that the extent of added value from credit-plus depends on the ability of the credit supplier to cultivate trust, or social capital, amongst clients. Applying difference-in-difference estimation, we exploit a natural experiment of two ‘credit-plus’ programmes in Mexico. The findings suggest that credit-plus is not universally effective, but that it is at its most effective, especially with low-income groups, where ‘bonding’ (within-group) social capital exists.
Original languageEnglish
Pages (from-to)1700-1716
Number of pages16
JournalJournal of Development Studies
Volume50
Issue number12
Early online date21 Nov 2014
DOIs
Publication statusPublished - 2014

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credit
Mexico
social capital
value added
microfinance
supplier
low income
income
experiment
ability
Group
programme

Keywords

  • Mexico
  • microfinance
  • credit-plus
  • social capital

Cite this

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Where is the ‘Plus’ in ‘Credit-Plus’? The Case of Chiapas, Mexico. / Biosca Artinano, Olga; Lenton, Pamela; Mosley, Paul.

In: Journal of Development Studies, Vol. 50, No. 12, 2014, p. 1700-1716.

Research output: Contribution to journalArticle

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