Investigating the effects of microcredit on the food security of rural households: Evidence from Zehak county, Iran

Articles in Press

Document Type : Original Research

Authors
A. Sani Heidary
M. Daneshvar Kakhki
M. Sabouhi sabouni
H. Mohammadi
Department of Agricultural Economics, Agricultural Faculty, Ferdowsi University of Mashhad, Mashhad, Islamic Republic of Iran.
Abstract
Microcredit plays a vital role in the food security of rural households. However, to the best of our knowledge, the effects of microcredit on improving the food security of households have not yet been well studied and understood in Iran. Therefore, this study aims to investigate the success of microcredit programs on enhancing the food security of rural households in Zehak county using the propensity score matching method and bootstrap algorithm. For this purpose, two food security indices, including the Household Food Insecurity Access Scale (HFIAS) and the Food Consumption Score (FCS), are used. The results revealed that 100% of the households face food insecurity. The prevalence of food insecurity was 20.0%, 42.5%, and 37.5% for mild, moderate, and severe food insecurity, respectively. In addition, 30% of households are in poor status of food consumption. Our findings emphasize the positive and significant role of microcredit in improving food security. The results showed that microcredit decreased the HFIAS index of the recipient households by 24.31-27.81% and increased the FCS index by 25.87-31.45%. Therefore, policy-makers and decision-makers should promote and strengthen governmental and non-governmental organizations providing microcredit. It is also recommended to provide information and reduce collateral restrictions to increase households' access to microcredit.

Keywords

Subjects

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Articles in Press, Accepted Manuscript
Available Online from 01 January 2024