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The Impact of Skill Development and Human Capital Training on Self Help Groups

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  • Bali Swain, Ranjula

    (Department of Economics)

Abstract

We evaluate the effect of training, in both skill development and human capital, provided by facilitators of self help groups (SHGs). Indian SHGs are unique in that they are mainly NGOformed microfinance groups but later funded by commercial banks. The results suggest that, in general, training does not impact assets but training can reverse the potentially negative effect of credit on income. Moreover, training is more effective for asset accumulation in villages with better infrastructure. In terms of training delivery, results show that the most effective linkage is when NGOs form groups and banks finance SHGs.

Suggested Citation

  • Bali Swain, Ranjula, 2009. "The Impact of Skill Development and Human Capital Training on Self Help Groups," Working Paper Series 2009:11, Uppsala University, Department of Economics.
  • Handle: RePEc:hhs:uunewp:2009_011
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    References listed on IDEAS

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    1. Dean Karlan & Martin Valdivia, 2011. "Teaching Entrepreneurship: Impact of Business Training on Microfinance Clients and Institutions," The Review of Economics and Statistics, MIT Press, vol. 93(2), pages 510-527, May.
    2. Xavier Giné & Pamela Jakiela & Dean Karlan & Jonathan Morduch, 2010. "Microfinance Games," American Economic Journal: Applied Economics, American Economic Association, vol. 2(3), pages 60-95, July.
    3. Shahidur R. Khandker, 2005. "Microfinance and Poverty: Evidence Using Panel Data from Bangladesh," The World Bank Economic Review, World Bank, vol. 19(2), pages 263-286.
    4. Coleman, Brett E., 1999. "The impact of group lending in Northeast Thailand," Journal of Development Economics, Elsevier, vol. 60(1), pages 105-141, October.
    5. Smith, Stephen C., 2002. "Village Banking and Maternal and Child Health: Evidence from Ecuador and Honduras," World Development, Elsevier, vol. 30(4), pages 707-723, April.
    6. Mark M. Pitt & Shahidur R. Khandker, 1998. "The Impact of Group-Based Credit Programs on Poor Households in Bangladesh: Does the Gender of Participants Matter?," Journal of Political Economy, University of Chicago Press, vol. 106(5), pages 958-996, October.
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    Cited by:

    1. Pazhanisamy, R. & Selvarajan, E., 2019. "Micro Enterprises Performances Potential Index (MEPPI): A Study with the Reference to Rural Areas of the Cuddalore District, Tamilnadu," EconStor Preprints 197209, ZBW - Leibniz Information Centre for Economics, revised 2019.

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    More about this item

    Keywords

    Asia; India; microfinance; impact studies; training; Self Help Groups;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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