x

We are happy to announce that all trial registrations will now be issued DOIs (digital object identifiers). For more information, see here.
The Impacts of Microfinance: Evidence from Joint-Liability Lending in Mongolia
Last registered on March 21, 2014

Pre-Trial

Trial Information
General Information
Title
The Impacts of Microfinance: Evidence from Joint-Liability Lending in Mongolia
RCT ID
AEARCTR-0000303
Initial registration date
March 07, 2014
Last updated
March 21, 2014 5:55 AM EDT
Location(s)
Primary Investigator
Affiliation
EBRD
Other Primary Investigator(s)
PI Affiliation
Institute for Fiscal Studies
PI Affiliation
Institute for Fiscal Studies
PI Affiliation
EBRD
PI Affiliation
Institute for Fiscal Studies
Additional Trial Information
Status
Completed
Start date
2008-02-01
End date
2011-11-01
Secondary IDs
Abstract
We present evidence from a randomized field experiment in rural Mongolia on the comparative poverty impact of group versus individual microcredit. We find a positive impact of group loans but not of individual loans on entrepreneurship and food consumption. Moreover, group borrowers are less likely to make informal transfers to families and friends while the opposite holds true for individual borrowers. This suggests that joint liability may deter borrowers from using loans for non-investment purposes with stronger impacts as a result. We find no difference in repayment rates between both types of microcredit.
External Link(s)
Registration Citation
Citation
Attanasio, Orazio et al. 2014. "The Impacts of Microfinance: Evidence from Joint-Liability Lending in Mongolia." AEA RCT Registry. March 21. https://doi.org/10.1257/rct.303-3.0.
Former Citation
Attanasio, Orazio et al. 2014. "The Impacts of Microfinance: Evidence from Joint-Liability Lending in Mongolia." AEA RCT Registry. March 21. https://www.socialscienceregistry.org/trials/303/history/1372.
Sponsors & Partners

There are documents in this trial unavailable to the public. Use the button below to request access to this information.

Request Information
Experimental Details
Interventions
Intervention(s)
Joint-liability group lending (without repayment meetings) in 15 villages, individual lending in 15 villages and ten control villages.
Intervention Start Date
2008-03-15
Intervention End Date
2009-10-01
Primary Outcomes
Primary Outcomes (end points)
Loan take up, female entrepreneurship, profits, household income, consumption, asset ownership, labor supply.
Primary Outcomes (explanation)
Secondary Outcomes
Secondary Outcomes (end points)
Secondary Outcomes (explanation)
Experimental Design
Experimental Design
The experiment took place in 40 villages across five aimags (provinces) in northern Mongolia. The experiment started in February 2008 when XacBank loan officers and representatives of the Mongolian Women's Federation (MWF) organized information sessions in all 40 villages. After about 30 women had signed up in each village and had declared their interest in receiving a loan, a detailed baseline survey was administered during the second and third week of March 2008. The total number of women interviewed was 1,148. The face-to-face interviews were conducted by a specialized survey firm hired by the research team and independent of XacBank. At the time of the baseline survey we also collected information on the main socioeconomic, demographic, and geographic characteristics of the 40 villages. Randomization took place after completion of the baseline survey so that at the time of the interview respondents did not know whether they would be offered a group loan, an individual loan, or no loan at all. Village-level randomization was performed in a central location, using a random number generator in Stata, as decentralized and public randomization was not feasible given that the villages were spread over a large geographical territory. Randomization across rather than within villages was chosen because it was administratively and politically easier to manage. We stratified at the province level. After randomization, group formation proceeded in the 15 group-lending villages, but not in the individual-lending and control villages. Group formation consisted of the development of internal procedures, the election of a group leader, and the signing of a group charter. Groups were formed by the women themselves not by XacBank. A maximum of two women per group were allowed to be from the same family. After a group had collected enough internal savings it could apply for its first XacBank loan. The treatment period during which XacBank provided loans in the group and individual-lending villages lasted 1.5 years - from March 2008 to September 2009. During this period participating women in treatment villages could apply for (repeat) loans. In October 2009 we conducted a follow-up survey to measure again the poverty status and economic activity of the participating women. At this time, we also conducted a second village-level survey to collect information on village characteristics that may have changed, such as the prices of important consumer goods. XacBank collected repayment information on all loans for the entire period March 2008-June 2011. Lastly, in October 2011, we revisited one individual-lending and two group-lending villages for structured interviews and discussions with a number of borrowers about their experience of the lending programs.
Experimental Design Details
Randomization Method
Village-level randomization was performed in a central location, using a random number generator in Stata, as decentralized and public randomization was not feasible given that the villages were spread over a large geographical territory.
Randomization Unit
Randomization across rather than within villages was chosen because it was administratively and politically easier to manage. We stratified at the province level.
Was the treatment clustered?
Yes
Experiment Characteristics
Sample size: planned number of clusters
40 villages
Sample size: planned number of observations
1,148 women
Sample size (or number of clusters) by treatment arms
Joint-liability group lending (without repayment meetings) in 15 villages, individual lending in 15 villages and ten control villages.
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
IRB
INSTITUTIONAL REVIEW BOARDS (IRBs)
IRB Name
Technical Cooperation Committee (TC Com) EBRD
IRB Approval Date
2007-06-14
IRB Approval Number
ID 18969
Post-Trial
Post Trial Information
Study Withdrawal
Intervention
Is the intervention completed?
Yes
Intervention Completion Date
October 01, 2009, 12:00 AM +00:00
Is data collection complete?
Yes
Data Collection Completion Date
July 01, 2011, 12:00 AM +00:00
Final Sample Size: Number of Clusters (Unit of Randomization)
40 villages
Was attrition correlated with treatment status?
Yes
Final Sample Size: Total Number of Observations
1,148. Attrition correlated with treatment in the case of the individual treatment not in case of the group treatment.
Final Sample Size (or Number of Clusters) by Treatment Arms
15 group lending, 15 individual lending, 10 control
Data Publication
Data Publication
Is public data available?
No
Program Files
Program Files
No
Reports and Papers
Preliminary Reports
Relevant Papers