The impact of microfinance on household expenditure patterns: Evidence from Amhara Credit and Saving Institution, Ethiopia

The aim of this study is to examine the impact of microfinance on household expenditure pattern, a case of Amhara credit and saving institution, Ethiopia. The study particularly focused on expenditure related with food and non-food item. The study employed primary survey data collected from 193 existing participant households joining ACSI for more than two years as a treatment group and 193 non-participant households selected from newly incoming clients as a control group. The study used Descriptive and quasi-experimental design. Descriptive and regression analysis technique was employed to analyze the collected data. The study finds that joining ACSI and become beneficiary improves both the food and non-food item expenditure pattern of households since the independent t-test value shows that there is statistical significant mean difference among participant and non-participant households (x^_ difference = 0.81865 and =.68912, P < 0.05). The result from regression analysis also supports participation improves the expenditure pattern (P< 0.05). Therefore, based on the findings of the study ACSI has notable contribution with regard to food and non-food household expenditure pattern.