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“From Savings to Security: The Impact of Self‐Help Group Micro Savings on Financial Stability and Development—A Literature Analysis”

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  • T. Raja Rupa
  • G. Parimalarani

Abstract

This literature review examines the impact of micro‐savings, particularly through Self‐Help Groups (SHGs), on economic development, with a specific focus on Asian and developing countries. The review investigates how increased savings, especially in rural areas and among women, contribute to economic growth by facilitating investment and empowering individuals. A variety of studies employing diverse methodologies to explore the relationship between savings, financial inclusion, and economic growth are assessed. The findings suggest that access to savings services and financial inclusion measures significantly and positively influence economic growth, particularly in contexts where informal savings are prevalent. The role of SHGs in promoting savings and microenterprise development is also highlighted.

Suggested Citation

  • T. Raja Rupa & G. Parimalarani, 2025. "“From Savings to Security: The Impact of Self‐Help Group Micro Savings on Financial Stability and Development—A Literature Analysis”," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 54(3), November.
    • Handle: RePEc:bla:ecnote:v:54:y:2025:i:3:n:e70016
    DOI: 10.1111/ecno.70016
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    References listed on IDEAS

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    1. Emmanuel Anoruo & Yusuf Ahmad, 2001. "Causal Relationship between Domestic Savings and Economic Growth: Evidence from Seven African Countries," African Development Review, African Development Bank, vol. 13(2), pages 238-249.
    2. Franklin Allen, 2012. "Trends in Financial Innovation and their Welfare Impact: an Overview," European Financial Management, European Financial Management Association, vol. 18(4), pages 493-514, September.
    3. Marco Tavanti, 2013. "Before Microfinance: The Social Value of Microsavings in Vincentian Poverty Reduction," Journal of Business Ethics, Springer, vol. 112(4), pages 697-706, February.
    4. Franklin Allen, 2012. "Trends in Financial Innovation and Their Welfare Impact: An Overview," DNB Working Papers 355, Netherlands Central Bank, Research Department.
    5. Somville, Vincent & Vandewalle, Lore, 2023. "Access to banking, savings and consumption smoothing in rural India," Journal of Public Economics, Elsevier, vol. 223(C).
    6. Maite Alguacil & Ana Cuadros & Vicente Orts, 2004. "Does saving really matter for growth? Mexico (1970-2000)," Journal of International Development, John Wiley & Sons, Ltd., vol. 16(2), pages 281-290.
    7. Artur Ribaj & Fitim Mexhuani, 2021. "The impact of savings on economic growth in a developing country (the case of Kosovo)," Journal of Innovation and Entrepreneurship, Springer, vol. 10(1), pages 1-13, December.
    8. Mohd Abass Bhat & Geleta Demera Gomero & Shagufta Tariq Khan, 2024. "Antecedents of Savings Behaviour Among Rural Households: A Holistic Approach," FIIB Business Review, , vol. 13(1), pages 56-71, January.
    9. Rebecca M Vonderlack & Mark Schreiner, 2002. "Women, microfinance, and savings: Lessons and proposals," Development in Practice, Taylor & Francis Journals, vol. 12(5), pages 602-612, November.
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