Welfare Impacts of Microcredit Programmes: An Empirical Investigation in the State‐Designated Poor Counties of Shaanxi, China

This paper evaluates the welfare impacts of microcredit programmes and the activities of non‐governmental organization microfinance service providers in state‐designated poor counties of Shaanxi, China. Study results suggest positive impacts on microcredit programme participants with respect to increased income (by 4.07 per cent), general expenditures (6.45 per cent) and savings (3.13 per cent). Top income quartile participants experience more benefits, and women gain greater access to decision‐making. These findings suggest that successful and sustainable microcredit intervention improves lives and plays an important role in improving rural economy, possibly reducing inequality between rural and urban areas in China.