What question did this study set out to answer?

This article investigates how different cooperative finance models affect village-level economic activity in Indonesia.

Too crowded to grow? Luminosity-based evidence on village cooperative finance in Indonesia

View Full Paper

Ask AI

Bookmark

Authors

This article examines the effectiveness of cooperative microfinance institutions in Indonesia, implying a need for adaptable policies.

This article investigates how different cooperative finance models affect village-level economic activity in Indonesia.
Utilized village-level data with luminosity-based GDP estimates from calibrated nighttime light data.
Applied quasi-experimental methods to compare KUD and Kospin performance.
Analyzed economic outcomes associated with different cooperative structures within villages.
Villages with Kospin cooperatives show higher local economic activity compared to KUDs.
KUDs operating alongside formal banks lead to more favorable economic outcomes.
The presence of KUDs, Kospin, and banks together is linked to reduced marginal economic benefits, indicating potential overcrowding.

Annef et al. (2026) studied this question.

View Full Paper

Ask AI

Bookmark