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Differential impact of microfinance delivery mechanism on vulnerability

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  • Ranjula Bali Swain

Abstract

Microfinance reduces vulnerability. We investigate if this impact varies by the delivery mechanism used. Correcting for the membership selection bias using Propensity Score Matching (PSM), the household's vulnerability is estimated using the Self-Help Group (SHG) microfinance programme data in India. The results show that the reduction in vulnerability is greater for villages with better infrastructure and for SHGs that are formed by NGOs and linked by banks (linkage model 2).

Suggested Citation

  • Ranjula Bali Swain, 2012. "Differential impact of microfinance delivery mechanism on vulnerability," Applied Economics Letters, Taylor & Francis Journals, vol. 19(8), pages 721-724, May.
    • Handle: RePEc:taf:apeclt:v:19:y:2012:i:8:p:721-724
    DOI: 10.1080/13504851.2011.597716
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    References listed on IDEAS

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    1. Katsushi Imai & Xiaobing Wang & Woojin Kang, 2010. "Poverty and vulnerability in rural China: effects of taxation," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 8(4), pages 399-425.
    2. James J. Heckman & Hidehiko Ichimura & Petra E. Todd, 1997. "Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(4), pages 605-654.
    3. Bali Swain, Ranjula & Floro, Maria, 2010. "Reducing Vulnerability through Microfinance: Evidence from Indian Self Help Group Program," Working Paper Series 2010:23, Uppsala University, Department of Economics.
    4. Ligon, Ethan & Schechter, Laura, 2004. "Evaluating different approaches to estimating vulnerability," Social Protection Discussion Papers and Notes 30159, The World Bank.
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    1. Mary Kay Gugerty & Pierre Biscaye & C. Leigh Anderson, 2019. "Delivering development? Evidence on self‐help groups as development intermediaries in South Asia and Africa," Development Policy Review, Overseas Development Institute, vol. 37(1), pages 129-151, January.

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