Does the Village Fund matter in Thailand? Evaluating the impact on incomes and spending

► The Thailand Village Fund is one of the largest microcredit programs anywhere. ► Village Fund borrowing is associated with 3.5% more spending, and 1.4% more income. ► The findings are based on the 2002 and 2004 Socioeconomic Surveys, including a rural panel component. ► The effect on expenditure of Village Fund loans is strongest at the lower quantiles, and in this sense is “pro-poor”.