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Effectiveness of Microfinance under SGSY scheme to reduce Poverty and Vulnerability of Rural Households: A Natural Experiment

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  • Kundu, Amit

Abstract

This paper shows that government of India supported microfinance programme under SGSY scheme is partially effective to reduce poverty of the rural households. Few expansion of National Rural Employment Guarantee scheme plays here the supportive role. Taking the help of Natural Experiment it is also proved that microfinance programme is also able to reduce vulnerability of the rural participating households. This is done through constructing vulnerability index. The social factor i.e. enhancement of empowerment of the participating Self-Help Group members all of whom are women under SGSY scheme between the concerned time period and size of microcredit taken for income generating activities plays a significant role to reduce vulnerability of the participating households of this microfinance programme.

Suggested Citation

  • Kundu, Amit, 2010. "Effectiveness of Microfinance under SGSY scheme to reduce Poverty and Vulnerability of Rural Households: A Natural Experiment," MPRA Paper 35193, University Library of Munich, Germany, revised 07 Aug 2011.
  • Handle: RePEc:pra:mprapa:35193
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    References listed on IDEAS

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    1. Bali Swain, Ranjula & Floro, Maria, 2007. "Effect of Microfinance on Vulnerability, Poverty and Risk in Low Income Households," Working Paper Series 2007:31, Uppsala University, Department of Economics.
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    More about this item

    Keywords

    Microfinance; SGSY Scheme; Poverty; Vulnerability; Natural Experiment;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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