The studies on the impact of microcredit mainly focus on the well-being and poverty status of the beneficiary households. In order to assess the role of microcredit in the broader context of economic development, it would be necessary to go beyond the direct impact on the beneficiary households to examine the spillover effects on other households and on the local economy; this in turn will help to determine the economy-wide impact. Furthermore, in order to capture fully the impact of microcredit, one would need to look at the interaction between the growth of the local economies and the expansion of microcredit in a dynamic context.