The wealth effects of microcredit: Evidence from rural China

This paper evaluates the wealth effects of microcredit program operated by China Foundation for Poverty Alleviation (CFPA) in rural China. Results indicate that although the program has no potential to improve the housing conditions (measured by house value) of its participants during a relatively short period, it contributes to increase their accumulation of consumer durables (measured by purchased value). Moreover, the clients that persistently participated in the program benefited more than other two types of participants.