IDEAS home Printed from https://ideas.repec.org/a/oup/jafrec/v27y2018i4p457-482..html
   My bibliography  Save this article

Microcredit and Food Security: Evidence from Rural Households in Uganda

Author

Listed:
  • Faith M Namayengo
  • Gerrit Antonides
  • Francesco Cecchi

Abstract

This study investigates the effect of participation into a microcredit program on household food security parameters of female borrowers in a rural setting in Uganda. We explore the modes of food acquisition, dietary diversity, caloric and protein intake, and qualitative food insecurity measures for different categories of respondents. We conduct a cross-sectional analysis comparing old clients to newly registered first time borrowers. Next, we compare first time borrowers and non-borrowers using a panel design. While the cross-sectional analysis allows the comparison of women that similarly self-selected into borrowing, the panel analysis complements by providing insights into changes of food security parameters. In both cases, we use Kernel matching, or difference-in-difference with Kernel matching, to control for potential bias in observables, and perform a sensitivity analysis with respect to unobservables using Rosenbaum bounds as well as an individual fixed effects panel analysis. Results show a decline in food security following the uptake of microcredit. In particular, the analysis reveals robustly lower dietary diversity among long-time borrowers than new borrowers, and larger reductions in dietary diversity scores among new borrowers, after 1 year, compared to controls. The reduction in dietary diversity was traced to a reduction in animal-source food, fruit and sugar intake. We find indicative evidence that this is partly explained by a shift from own production to reliance on food purchase by households. Other household members relegating the burden of food provision to women after borrowing may also help explain the observed result.

Suggested Citation

  • Faith M Namayengo & Gerrit Antonides & Francesco Cecchi, 2018. "Microcredit and Food Security: Evidence from Rural Households in Uganda," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 27(4), pages 457-482.
  • Handle: RePEc:oup:jafrec:v:27:y:2018:i:4:p:457-482.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/jae/ejx043
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:jafrec:v:27:y:2018:i:4:p:457-482.. 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: (Oxford University Press). General contact details of provider: http://edirc.repec.org/data/csaoxuk.html .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.