Welfare Impacts of Gasha Microfinance in Addis Ababa, Ethiopia: Evidence using the Propensity Score Matching Approach

Abstract

The study evaluated the contribution of Gasha microfinance services in improving welfare of its clients. The study adopted a causal research design with quantitative research approach. Primary data were generated from a total of 220 (100 program participants and 120 non-participants) respondents. The logit model was employed to estimate the propensity scores for participation. Matching estimators were adopted to investigate impacts of microfinance services on incomes, saving, and expenditure on health and education. The finding indicated that participation in Gasha microfinance service contributed positively to the wellbeing of participants through increased income, saving levels, and total expenditure. The authors collected fresh data from program participants and non-participants (who are eligible and on the waiting lists) of Gasha microfinance, and analyzed the data using acceptable methodology.