Advanced Search
MyIDEAS: Login

Public Good Provision in Indian Rural Areas: the Returns to Collective Action by Microfinance Groups

Contents:

Author Info

  • Paolo Casini

    (LICOS, K.U.Leuven)

  • Lore Vandewalle

    ()
    (Center for Research in the Economics of Development, University of Namur)

Abstract

Self-Help Groups (SHGs) are the most common form of microfinance in India. We study the impact of collective actions undertaken by these groups, composed of women only, on the variety of public goods the elected local authorities deal with. We provide a simple model that suggests two hypotheses that we test and confirm using first hand data. The rst hypothesis states that local authorities provide a larger variety of public goods when SHGs undertake collective actions, compared to a situation with exclusive provision by the local authority. The second hypothesis states that local authorities begin or increase the provision of public goods preferred by SHGs and that these might include goods that exert a negative externality on other villagers. We provide evidence of an important non-financial benefit of microfinance: it provides a platform that allows socially disadvantaged women to meet regularly and discuss problems. When they undertake collective actions to solve those problems, these are recognized by the local authorities. Problems that are closer to the needs of women seem to find their way into the political agenda.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.fundp.ac.be/eco/economie/recherche/wpseries/wp/1119.pdf
File Function: First version, 2011
Download Restriction: no

Bibliographic Info

Paper provided by University of Namur, Department of Economics in its series Working Papers with number 1119.

as in new window
Length: 39 pages
Date of creation: Dec 2011
Date of revision:
Handle: RePEc:nam:wpaper:1119

Contact details of provider:
Postal: Rempart de la Vierge 8, B-5000 Namur
Phone: ++32/(0)81/72.48.53
Fax: ++32/(0)81/72.48.40
Web page: http://www.fundp.ac.be/en/eco
More information through EDIRC

Related research

Keywords:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Polborn Mattias K, 2008. "Competing for Recognition through Public Good Provision," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 8(1), pages 1-25, September.
  2. Dean Karlan & Martin Valdivia, 2007. "Teaching Entrepreneurship: Impact of Business Training on Microfinance Clients and Institutions," Working Papers 107, Center for Global Development.
  3. Siwan Anderson & Jean-Marie Baland, 2002. "The Economics Of Roscas And Intrahousehold Resource Allocation," The Quarterly Journal of Economics, MIT Press, vol. 117(3), pages 963-995, August.
  4. Stefano DellaVigna & Ethan Kaplan, 2006. "The Fox News Effect: Media Bias and Voting," NBER Working Papers 12169, National Bureau of Economic Research, Inc.
  5. Maldonado, Jorge H. & González-Vega, Claudio, 2008. "Impact of Microfinance on Schooling: Evidence from Poor Rural Households in Bolivia," World Development, Elsevier, vol. 36(11), pages 2440-2455, November.
  6. Bénabou, Roland & Tirole, Jean, 2004. "Incentives and Prosocial Behaviour," CEPR Discussion Papers 4633, C.E.P.R. Discussion Papers.
  7. 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.
  8. Gani Aldashev & Catherine Guirkinger, 2011. "Deadly Anchor: Gender Bias under Russian Colonization of Kazakhstan, 1898-1908," Working Papers 1111, University of Namur, Department of Economics.
  9. Timothy Besley & Rohini Pande & Lupin Rahman & Vijayendra Rao, 2004. "The Politics of Public Good Provision: Evidence from Indian Local Governments," Journal of the European Economic Association, MIT Press, vol. 2(2-3), pages 416-426, 04/05.
  10. Andreoni, James, 1989. "Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1447-58, December.
  11. Raghabendra Chattopadhyay & Esther Duflo, 2004. "Women as Policy Makers: Evidence from a Randomized Policy Experiment in India," Econometrica, Econometric Society, vol. 72(5), pages 1409-1443, 09.
  12. John R. Lott & Jr. & Lawrence W. Kenny, 1999. "Did Women's Suffrage Change the Size and Scope of Government?," Journal of Political Economy, University of Chicago Press, vol. 107(6), pages 1163-1198, December.
  13. Jean-Marie Baland & Rohini Somanathan & Lore Vandewalle, 2007. "Microfinance Lifespans: A Study of Attrition and Exclusion in Self-Help Groups in India," India Policy Forum, Global Economy and Development Program, The Brookings Institution, vol. 4(1), pages 159-210.
  14. Besley, Timothy & Coate, Stephen, 2003. "Centralized versus decentralized provision of local public goods: a political economy approach," Journal of Public Economics, Elsevier, vol. 87(12), pages 2611-2637, December.
  15. Lena Edlund & Rohini Pande, 2002. "Why Have Women Become Left-Wing? The Political Gender Gap And The Decline In Marriage," The Quarterly Journal of Economics, MIT Press, vol. 117(3), pages 917-961, August.
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 in new window

Cited by:
  1. Desai, Raj M. & Joshi, Shareen, 2013. "Collective action and community development : evidence from self-help groups in rural India," Policy Research Working Paper Series 6547, The World Bank.
  2. Brian Greaney & Joseph P. Kaboski & Eva Van Leemput, 2013. "Can Self-Help Groups Really Be "Self-Help"?," NBER Working Papers 18970, National Bureau of Economic Research, Inc.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:nam:wpaper:1119. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marie-H�l�ne Mathieu).

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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