An Impact Estimator Using Propensity Score Matching: People’s Business Credit Program to Micro Entrepreneurs in Indonesia

Authors

1 Faculty of Economics, Persada YAI University, Jakarta, Indonesia.

2 Department of Economics, Bogor Agricultural University, Bogor, Indonesia.

3 Department of Resource and Enviromental Economics, Bogor Agricultural University, Bogor, Indonesia.

Abstract

P





eople’s business credit program (KUR) has been launched to alleviate poverty through provision of micro financing to micro entrepreneurs in Indonesia This study aims to estimate the impact of KUR program using cross-sectional data and propensity score matching technique (PSM). The survey was conducted on 332 household entrepreneurs, consisting of 155 KUR receivers and 177 non-KUR receivers. Results show that KUR has impacts on increasing profits, total revenues, number of employees, and asset ownerships. KUR program also has impacted on reduction of food spending share. As such, KUR can play an important role to alleviate poverty and unemployment.
 

Keywords

References

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Iranian Economic Review
Volume 20, Issue 4
October 2016
Pages 599-615

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