Impact of Amhara Credit and Saving Institution on Asset Holdings of Households: The Case of Woldiadistrict, North Wollo Zone, Ethiopia

Abstract

In this study impact of Amhara Credit and Saving Institution on asset holdings of households in Woldia District of Amhara Region was evaluated. Cross-sectional survey data collected from 200 households were used for the study. The survey respondents were drawn from both program and non-program participants in the area of Woldia district. The data were analyzed using descriptive and econometric analysis. Applying a propensity score matching technique, the study found that the program has increased participating households’ physical asset holdings by 44.02% compared to non-participant households and livestock asset holdings by 4.17% as campared to non participant households. However, the impact of the program was not uniform across the participating households. The estimated results revealed that households who are female-headed, who had large cultivated land size, had access to extension services and had better education level were more likely to gain more from the program, ceterisparibus. On the other hand age of household head, distance from the credit source, distance from the nearest market, dependency ratio  and respondents perception to group collateral are affect negatively to gain more from the program. In this work the results are discussed in detail and their implications are drawn for intervention .based on the findings. The local government should increase extension services, improve land productivity, increase adult learning in the woreda, locate credit centers in each kebeles and facilitate individual borrowing mechanisms. In general, more research may be required to be carried out to assess the impact of microfinance services at macro level to examine the welfare improvement potential of microfinance which is the major concern of the policy makers in the country.

Keywords: Amhara Credit and Saving Institution Program, Asset, Impact, logit model Propensity Score Matching, Ethiopia.