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An Empirical Evaluation of the Link between Women Participation in Village Savings and Loans Association (VSLA) and Poverty Reduction in Ethiopia

Author

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  • Nardos Legesse Beyene

    (Independent Development Economics Researcher, University of the Western Cape, Faculty of Economics and Management Science at the University of the Western Cape, South Africa)

  • Mulugeta F. Dinbabo

Abstract

Women's participation is a fundamental prerequisite for gender equality and genuine democracy. It facilitates women's direct engagement in decision-making and is a means of ensuring better accountability to women. This paper assesses the impact of women participation in Village Savings and Loans Association (VSLA) on poverty reduction in Hawassa city, Ethiopia. Using a mixed research methodology, and applying propensity score matching, the study found that women participation in VSLA has a significant positive impact in increasing average monthly household income of participant woman. Besides, women participation in VSLA has a significant positive association with improvements in household diet, health, children’s education, and women’s involvement in household decisions. The study recommends a reinforcement of government and nongovernmental organizations in providing regular and need based capacity building trainings for VSLA participants followed by a concerted effort to link VSLA participants with formal microfinance institutions.

Suggested Citation

  • Nardos Legesse Beyene & Mulugeta F. Dinbabo, 2019. "An Empirical Evaluation of the Link between Women Participation in Village Savings and Loans Association (VSLA) and Poverty Reduction in Ethiopia," Journal of Reviews on Global Economics, Lifescience Global, vol. 8, pages 566-580.
    • Handle: RePEc:lif:jrgelg:v:8:y:2019:p:566-580
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    Cited by:

    1. Lambongang Munkaila & Abiodun Emmanuel Awoyemi & Kafui Kosiwor Sokpor, 2020. "Effect of Participation in Village Savings and Loans Associations on the Financial Performance of Rural Households in Northern Region, Ghana," International Journal of Publication and Social Studies, Asian Economic and Social Society, vol. 5(2), pages 178-188, June.

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