The Evolution Of Microcredit Demand: A panel data analysis from Morocco

The aim of the Thesis is to analyze the determinants behind the demand for microcredit in the rural area of Morocco. In my study, I first employ a Cox Proportional Hazard Model fitting a number of individual features to disentangle the factors that systematically increase the probability of loan take-up. A second experimental design I implement consists of an application of the Logistic Regression to test the hypothesis that being part of a community encourages the diffusion of microfinance. Thirdly, I build a modeling framework based on an Instrumental Variable methodology combined with group fixed-effects to investigate the presence of peers effects channeled from microcredit clients' average outcomes to individual outcomes in the village. In my research, two major drivers of demand for credit result being the gender of the head of the household and the main occupation. Further, the analysis validates the evidence that individuals are more enticed to borrow once they observe a high acceptance rate of credit in the village. Finally, no significant spillover effect on the outcome level is detected.