Loans and Leaving: Migration and the Expansion of Microcredit in Cambodia
- 377 Downloads
Over the last decade, the expansion of microfinance institutions (MFIs) has dramatically shifted the availability of credit across the developing world. This recent development provides an opportunity to examine the relationship between household labor migration and access to and use of formal credit. Both theories of migration and the expectations of formal credit providers have suggested that labor migration and credit are substitute solutions to the demand for capital in the developing world, with the implication that greater access to formal financial services may stem migration out of rural places. Using household survey data from Cambodia, an MFI-saturated country, we find that households using formal credit and households with greater access to formal credit are more likely to have labor migrants than households without access. This association persists across size of loan, purpose of loan, remittances behavior, and for domestic migrations. These findings complicate our understanding of the relationship between credit and migration, and call for a greater recognition of the importance of context in framing migration behavior.
KeywordsMigration Microfinance Debt Credit New economics of labor migration Cambodia
- Angelucci, M. 2011. Migration and credit constraints: Evidence from Mexico. unpublished work. University of Michigan.Google Scholar
- Bateman, M. (2010). Why doesn’t microfinance work?. London: Zed.Google Scholar
- CBIRD (2014). Website accessed July 20, 2014. http://www.cbird.com.kh/.
- CGAP (2009). CGAP Consumer Protection Policy Diagnostic Report www.cgap.org/gm/document-1.9.41345/Cambodia%20Consumer%20Protection%20Diagnostic%20Report.pdf.
- Chan, S., & S. Acharya. (2002). “Facing the challenge of rural livelihoods- A perspective from nine villages in Cambodia.” in Working Paper 25. Phnom Penh: Cambodia Development Resource Institute.Google Scholar
- Chan, S. & S. So. (1999). "Cambodian Labour Migration to Thailand: A Preliminary Assessment." in Working Paper 11. Phnom Penh: Cambodia Development Resource Institute.Google Scholar
- Choeun, S., & T. Sros. 2008. “Value Chain for Pig Meat Marketing in Cambodia.” Center for Development Studies and Kingdom of Cambodia. Smallholder Livestock Production Programme. GCP/CMB/028/EC.Google Scholar
- Clark, H. A. (2006). When there was no money: Building ACLEDA bank in Cambodia’s evolving financial sector. Berlin: Springer.Google Scholar
- CMA (2010). Cambodia Microfinance Association Annual Report 2010. http://cma-network.org/drupal/download/Annual_Report/Annual_Report_2010.zip.
- De Haan, A., & Yaqub, S. (2009). “Migration and poverty: Linkages, knowledge gaps and policy implications.” United Nations Research Institute for Social Development. Social Policy and Development Programme Paper Number 40.Google Scholar
- Dichter, T. (2007). “A second look at microfinance: the sequence of growth and credit in economic history.” Development Policy Briefing Paper Center for Global Liberty and Prosperity, CATO Institute.Google Scholar
- Dixon, A., et al. (2012). Better nutrition, better future. Phnom Penh Post. August 24, 2012.Google Scholar
- Filmer, D., & Pritchett, L. (2001). Estimating wealth effects without expenditure data—Or tears: An application to educational enrollments in states of India. Demography, 38(1), 115–132.Google Scholar
- Fitzgerald, I., & Sovannarith, S. (2007). Moving out of poverty? Trends in community well-being and household mobility in nine Cambodian villages. Phnom Penh: Cambodia Development Resource Institute.Google Scholar
- Flaming, M., Duflos, E., Latortue, A., Nayar, N., & Roth, J. (2005). Country level effectiveness and accountability review. Washington, D.C.: CGAP.Google Scholar
- Gonzalez, A. (2009). “Microfinance at a glance 2008.” Available at http://www.themix.org/publications/microfinance-glance.: Microfinance Information Exchange.
- Gonzalez, A. (2010). “Is microfinance growing too fast.” in MIX Data Brief No. 5: Microfinance Information Exchange.Google Scholar
- Hondagneu Sotelo, P. (1994). Gendered transitions: Mexican experiences of immigration. Berkeley: University of California Press.Google Scholar
- IMF (2006). Cambodia poverty reduction strategy paper. International Monetary Fund: Washington D.C. http://www.imf.org/external/pubs/ft/scr/2006/cr06266.pdf.
- Lindstrom, D. P., & Lauster, N. (2001). Local economic opportunity and the competing risks of internal and U.S. Migration in Zacatecas, Mexico. International Migration Review, 34(4), 1232–1256.Google Scholar
- Liv, D. (2013). “Study on the drivers of over-indebtedness of microfinance borrowers in Cambodia: An in-depth investigation of saturated areas.” Cambodia Institute of Development.Google Scholar
- Löhr, D. (2011). The Cambodian land market: Development, aberrations, and perspectives. ASIEN, 120, 28–47.Google Scholar
- Maltoni, B. (2007). "Migration in Cambodia: Internal vs. External Flows." Paper presented at 8th ARPMN Conference on “Migration, Development and Poverty Reduction,” in Fuzhou (China), 25–29 May 2007.Google Scholar
- Massey, D., Arango, J., Hugo, G., Kouaouci, A., Pellegrino, A., & Taylor, J. E. (1998). Worlds in motion: Understanding international migration at the end of the millenium. New York: Oxford University Press.Google Scholar
- Massey, D. S., Durand, J., & Malone, N. J. (2002). Beyond smoke & mirrors: Mexican immigration in an era of economic integration. New York: Russell Sage Foundation.Google Scholar
- MIX (2011). Cross market analysis. Cambodia. Data downloaded December 20th 2010.Google Scholar
- MOP. (2012). Migration in Cambodia: Report of the Cambodian rural urban migration project (CRUMP). Ministry of Planning: Phnom Penh.Google Scholar
- Nang, P. (2013). Climate change adaptation and livelihoods in inclusive growth: A review of climate change impacts and adaptive capacity in Cambodia. CDRI Working Paper Series No. 82.Google Scholar
- Phlong, P. (2009). “Informal credit systems in Cambodia.” MA Thesis. Northern Illinois University.Google Scholar
- Rahman, A. (1999). Women and microcredit in rural Bangladesh: Anthropological study of the rhetoric and realities of Grameen Bank lending. Boulder: Westview Press.Google Scholar
- Roy, A. (2010). Poverty capital: Microfinance and the making of development. New York: Routeledge.Google Scholar
- Rutstein, S. O. (2008). “The DHS wealth index: Approaches for rural and urban areas.” in DHS Working Papers. Calverton: USAID, Macro International.Google Scholar
- Rutstein, S. O., & Johnson, K. (2004). “The DHS wealth index.” DHS comparative reports No. 6. Calverton, MD: ORC Macro.Google Scholar
- Stark, O., & Bloom, D. E. (1985). The new economics of labor migration. American Economic Review, 75, 173–178.Google Scholar
- Todaro, M. (1969). A model of labor migration and urban unemployment in less developed Countries. American Economic Review, 59, 138–148.Google Scholar
- UN Population Division (2012). World population prospects. http://esa.un.org/unpd/wpp/Excel-Data/migration.htm. Accessed July 14, 2014.
- World Bank (2013). Cambodia overview http://www.worldbank.org/en/country/cambodia/overview. Accessed July 11, 2014.
- Young J. et al. (eds) (2013). “Cattle health, production and trade in Cambodia.” Proceedings from three ACIAR-funded projects presented at an international workshop held in Phnom Penh, Cambodia, 7–8 June 2011. ACIAR Proceedings No. 138. Australian Centre for International Agricultural Research: Canberra.Google Scholar
- Zohir, S. & Matin, I. (2004). Wider impacts of microfinance institutions: Issues and concepts. Journal of International Development, 16, 301–330.Google Scholar