IDEAS home Printed from https://ideas.repec.org/a/ags/afjare/258601.html
   My bibliography  Save this article

Village savings and loan associations and household welfare: Evidence from Eastern and Western Zambia

Author

Listed:
  • Mwansakilwa, Chibamba
  • Tembo, Gelson
  • Zulu, Maureen Mwamba
  • Wamulume, Mukata

Abstract

This study uses propensity score matching (PSM) and data from Eastern and Western Zambia to estimate the impact of participation in village savings and loan associations (VSLAs) on consumption expenditure among rural households. As a proxy for welfare, consumption expenditure is often argued to be more reliable and less prone to under-reporting errors than income. The results indicate large positive and statistically significant consumption effects of participation in VSLAs. As much as 38% and 17% of total and per capita weekly household expenditure respectively can be attributed to participation in VSLA interventions. This is consistent with most prior studies and seems to suggest that, if properly designed and implemented, informal savings and lending initiatives equally have the capacity to contribute to rural poverty alleviation by facilitating access to affordable credit through savings.

Suggested Citation

  • Mwansakilwa, Chibamba & Tembo, Gelson & Zulu, Maureen Mwamba & Wamulume, Mukata, 2017. "Village savings and loan associations and household welfare: Evidence from Eastern and Western Zambia," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 12(1), March.
    • Handle: RePEc:ags:afjare:258601
    DOI: 10.22004/ag.econ.258601
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/258601/files/6.%20Mwansakilwa%20et%20al.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.258601?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Deon Filmer & Lant Pritchett, 2001. "Estimating Wealth Effects Without Expenditure Data—Or Tears: An Application To Educational Enrollments In States Of India," Demography, Springer;Population Association of America (PAA), vol. 38(1), pages 115-132, February.
    2. Gilligan, Daniel O. & Hoddinott, John, 2007. "AJAE Appendix: Is There Persistence in the Impact of Emergency Food Aid? Evidence on Consumption, Food Security and Assets in Rural Ethiopia," American Journal of Agricultural Economics APPENDICES, Agricultural and Applied Economics Association, vol. 89(2), pages 1-8, May.
    3. Mendola, Mariapia, 2007. "Agricultural technology adoption and poverty reduction: A propensity-score matching analysis for rural Bangladesh," Food Policy, Elsevier, vol. 32(3), pages 372-393, June.
    4. Stefan Klonner, 2008. "Private Information and Altruism in Bidding Roscas," Economic Journal, Royal Economic Society, vol. 118(528), pages 775-800, April.
    5. Conner Brannen & Damien Sheehan-Connor, 2016. "Evaluation of the impact of Village Savings and Loan Associations using a novel survey instrument," Development Southern Africa, Taylor & Francis Journals, vol. 33(4), pages 502-517, July.
    6. A. Smith, Jeffrey & E. Todd, Petra, 2005. "Does matching overcome LaLonde's critique of nonexperimental estimators?," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 305-353.
    7. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    8. Alberto Abadie & Guido W. Imbens, 2008. "On the Failure of the Bootstrap for Matching Estimators," Econometrica, Econometric Society, vol. 76(6), pages 1537-1557, November.
    9. Sascha O. Becker & Andrea Ichino, 2002. "Estimation of average treatment effects based on propensity scores," Stata Journal, StataCorp LP, vol. 2(4), pages 358-377, November.
    10. Ksoll, Christopher & Lilleør, Helene Bie & Lønborg, Jonas Helth & Rasmussen, Ole Dahl, 2016. "Impact of Village Savings and Loan Associations: Evidence from a cluster randomized trial," Journal of Development Economics, Elsevier, vol. 120(C), pages 70-85.
    11. Demirguc-Kunt, Asli & Klapper, Leora, 2012. "Measuring financial inclusion : the Global Findex Database," Policy Research Working Paper Series 6025, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dereck Moyo (Mr) & Tough Chinoda (PhD), 2022. "Impact of Village Savings and Loan Associations on Food Security in Zimbabwe: A Case Study of Marange Community in Mutare District," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(12), pages 110-124, December.
    2. Laston Petro Manja & Isatou A. Badjie, 2022. "The Welfare Effects of Formal and Informal Financial Access in the Gambia: A Comparative Assessment," SAGE Open, , vol. 12(1), pages 21582440221, March.
    3. Ehiakpor, Dennis S. & Danso-Abbeam, Gideon & Dagunga, Gilbert & Ayambila, Sylvester N., 2019. "Impact of Zai technology on farmers’ welfare: Evidence from northern Ghana," Technology in Society, Elsevier, vol. 59(C).
    4. Lambongang Munkaila & Abiodun Emmanuel Awoyemi & Kafui Kosiwor Sokpor, 2020. "Effect of Participation in Village Savings and Loans Associations on the Financial Performance of Rural Households in Northern Region, Ghana," International Journal of Publication and Social Studies, Asian Economic and Social Society, vol. 5(2), pages 178-188, June.
    5. Habimana, Dominique & Haughton, Jonathan, 2022. "Does Rwanda’s flagship microcredit programme boost agriculture and incomes?," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 17(3), September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Emiliano Magrini & Mauro Vigani, 2016. "Technology adoption and the multiple dimensions of food security: the case of maize in Tanzania," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 8(4), pages 707-726, August.
    2. repec:ags:bdbjaf:279932 is not listed on IDEAS
    3. Schilling, Brian J. & Attavanich, Witsanu & Sullivan, Kevin P. & Marxen, Lucas J., 2014. "Measuring the effect of farmland preservation on farm profitability," MPRA Paper 100122, University Library of Munich, Germany, revised Jun 2014.
    4. Ashimwe, Olive, 2016. "An Economic Analysis Of Impact Of Weather Index-Based Crop Insurance On Household Income In Huye District Of Rwanda," Research Theses 265675, Collaborative Masters Program in Agricultural and Applied Economics.
    5. Johar, Meliyanni, 2009. "The impact of the Indonesian health card program: A matching estimator approach," Journal of Health Economics, Elsevier, vol. 28(1), pages 35-53, January.
    6. Deschamps-Laporte, Jean-Philippe, 2013. "The impact of extension services on farming households in Western Kenya: A propensity score approach," Working Papers 2013:5, Örebro University, School of Business, revised 10 Jun 2013.
    7. Ashok K. Mishra & Anjani Kumar & Pramod K. Joshi & Alwin D'Souza, 2018. "Cooperatives, contract farming, and farm size: The case of tomato producers in Nepal," Agribusiness, John Wiley & Sons, Ltd., vol. 34(4), pages 865-886, October.
    8. Bruno Arpino & Arnstein Aassve, 2013. "Estimating the causal effect of fertility on economic wellbeing: data requirements, identifying assumptions and estimation methods," Empirical Economics, Springer, vol. 44(1), pages 355-385, February.
    9. Paudel, G. & Krishna, V. & McDonald, A., 2018. "Why some inferior technologies succeed? Examining the diffusion and impacts of rotavator tillage in Nepal Terai," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277149, International Association of Agricultural Economists.
    10. Volpe Martincus, Christian & Carballo, Jerónimo, 2008. "Is export promotion effective in developing countries? Firm-level evidence on the intensive and the extensive margins of exports," Journal of International Economics, Elsevier, vol. 76(1), pages 89-106, September.
    11. Kadiyala, Suneetha & Quisumbing, Agnes & Rogers, Beatrice & Webb, Patrick, 2009. "The Impact of Prime Age Adult Mortality on Child Survival and Growth in Rural Ethiopia," World Development, Elsevier, vol. 37(6), pages 1116-1128, June.
    12. Liane Faltermeier & Awudu Abdulai, 2009. "The impact of water conservation and intensification technologies: empirical evidence for rice farmers in Ghana," Agricultural Economics, International Association of Agricultural Economists, vol. 40(3), pages 365-379, May.
    13. Duong, Pham Bao & Thanh, Pham Tien, 2019. "Adoption and effects of modern rice varieties in Vietnam: Micro-econometric analysis of household surveys," Economic Analysis and Policy, Elsevier, vol. 64(C), pages 282-292.
    14. Liverpool- Tasie, Lenis Saweda O. & Adjognon, Serge & Kuku-Shittu, Oluyemisi, 2015. "Productivity Effects of Sustainable Intensification: The Case of Urea Deep Placement for Rice Production in Niger State, Nigeria," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 10(1), pages 1-13, March.
    15. Christian Volpe Martincus & Jerónimo Carballo, 2012. "Export promotion activities in developing countries: What kind of trade do they promote?," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 21(4), pages 539-578, June.
    16. Mishra, Ashok K. & Kumar, Anjani & Joshi, Pramod K. & D'souza, Alwin, 2016. "Impact of contracts in high yielding varieties seed production on profits and yield: The case of Nepal," Food Policy, Elsevier, vol. 62(C), pages 110-121.
    17. Jacopo, Bonan & Stefano, Pareglio & Valentina, Rotondi, 2015. "Extension Services, Production and Welfare: Evidence from a Field Experiment in Ethiopia," Working Papers 312, University of Milano-Bicocca, Department of Economics, revised 30 Oct 2015.
    18. Legrand Dunold Fils Saint-Cyr, 2013. "Morcellement du parcellaire et Performance des exploitations : une application à la Bretagne," Post-Print hal-01208912, HAL.
    19. Ashok K. Mishra & Anjani Kumar & Pramod K. Joshi & Alwin D'Souza, 2018. "Impact of contract farming on yield, costs and profitability in low‐value crop: evidence from a low‐income country," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 62(4), pages 589-607, October.
    20. Islam, Abu Hayat, 2015. "Can Integrated Rice-Fish System Increase Welfare of the Marginalized Extreme Poor in Bangladesh? A DID Matching Approach," 2015 Conference, August 9-14, 2015, Milan, Italy 211792, International Association of Agricultural Economists.
    21. Alexandra Peralta & Scott M. Swinton & Songqing Jin, 2018. "The Secret to Getting Ahead Is Getting Started: Early Impacts of a Rural Development Project," Sustainability, MDPI, vol. 10(8), pages 1-20, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:afjare:258601. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaaeaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.