Microcredit and Economic Development
Keywords: Microfinance, Microcredit, Economic Development, Machine Learning, Algorithmic Justice
The assessment of the impact of microcredit programs on economic development has long been a matter of considerable research interest. Among the objectives of microcredit programs are not only to achieve social inclusion for individuals but also to promote the socioeconomic development of a territory following the principles of sustainable development. Due to the relevance of microcredit programs in the economic context of developing countries, this discussion may be useful for microfinance institutions, development institutions, and policymakers. This thesis project aims to identify the impacts of microcredit programs on the economic development of countries and regions. Considering that the concept of microcredit refers to small loans for individuals to start or expand their businesses (Yunus, 2003; Snow and Buss, 2001) and that these small businesses can significantly contribute to sustainable economic development (Amoah et al., 2022), proposals for empirical articles have been developed. The first of these is a literature review on microcredit and economic development to identify the current stage of the scientific field and a future research agenda. The second aims to apply Granger’s causality test (Granger, 1969) to examine the causal relationships between the growth of microcredit and the economic development of the Northeast region of Brazil. The third article focuses on the discussion of algorithmic fairness in machine learning models used in the microfinance institutions’ credit-granting process and their impacts on regional economic development indicators.