TAILIEUCHUNG - Village Banking and Maternal and Child Health: Evidence from Ecuador and Honduras

The impact of perinatal mental health problems on infants has been studied in HIC, mostly in terms of neuro-psycho-behavioural variables, which are likely to apply in LMICs as well. Infants of depressed mothers show dysregulations affecting their behavior and physiology, thought to be derived from a prenatal exposure to a biochemical imbalance in their mothers (48, 70). Newborns of depressed mothers also have neurotransmitter imbalances (., higher cortisol and lower dopamine and serotonin levels), are described as physiologically less mature (., their electroencephalogram shows greater right frontal asymmetry, and lower vagal tone), and they perform less optimally on. | Village Banking and Maternal and Child Health Evidence from Ecuador and Honduras Stephen C. Smith George Washington University Washington DC 20052 Revised October 2001 Key words health credit microcredit village banking Ecuador Honduras and Latin America. JEL Classification Numbers Primary I12 and O17. Secondary I32 J13 J22 and O16. I would like to thank Suzanne Gleason Karla Hoff Jonathan Morduch Anna Paulson Anand Swamy an anonymous referee department seminar participants at Cornell George Mason George Washington IFPRI and Maryland College Park participants at the session on Micro Development AEA annual meetings Chicago the Ninth IAFEP Conference Univ. of Bristol England the WEA annual meetings and the NEUDC Conference Yale Univ. for their helpful comments. A special thanks to Sanjay Jain with whom I am collaborating on related theoretical research for many fruitful discussions. I gratefully acknowledge the invaluable assistance of Project HOPE especially Bettina Schwethelm and Rosalia Rodriguez-Garcia and James Macinko of the GWU Center for International Health with which Project HOPE contracted to design the program impact questionnaires on which the empirical part of the paper is based financial support for data collection from the Agency for International Development to Project HOPE cooperative agreement FAO-0158-00-2071-00 is also gratefully acknowledged. Any errors are my own. Address correspondence to Stephen C. Smith Dept. of Economics 624 Funger Hall George Washington University Washington DC 20052 e-mail scsmith@. Village Banking and Maternal and Child Health Evidence from Ecuador and Honduras Abstract Many microcredit institutions bundle credit with health education or other programs. This paper reviews arguments on such tie-ins and concludes that net benefits are possible but requires empirical testing. Quasi-experimental data from Project hope s health banks and credit-only village banks are then examined. The paper presents evidence that .

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