Zarylbek Kudabaev, Professor in the Economics Department and former Chairman of the National Statistical Committee, recently published a paper in the Post-Communist Economiesjournal. The paper titled «Household allocation of microfinance credit in Kyrgyzstan» was coauthored with Simone Angioloni (Agri-Food Biosciences Institution, Belfast, UK), Glenn C.W. Ames (University of Georgia, USA), and Michael Wetzstein (Purdue University, USA).
This study analyses the determinants of household microfinance credit allocation in Kyrgyzstan from 2006 to 2010. Results indicate that mobile phone and livestock ownership were identified as two key factors which increase the probability of borrowers using microfinance credit for productive purposes. Furthermore, borrowers in the rural Naryn region, one of the poorest areas in Kyrgyzstan, have a higher probability of allocating their loans toward food purchases and the smallest probability of allocating credit toward starting a business or other productive purposes.