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Differential impact of microfinance delivery mechanism on vulnerability

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  • Ranjula Bali Swain

Abstract

Microfinance reduces vulnerability. We investigate if this impact varies by the delivery mechanism used. Correcting for the membership selection bias using Propensity Score Matching (PSM), the household's vulnerability is estimated using the Self-Help Group (SHG) microfinance programme data in India. The results show that the reduction in vulnerability is greater for villages with better infrastructure and for SHGs that are formed by NGOs and linked by banks (linkage model 2).

Suggested Citation

  • Ranjula Bali Swain, 2012. "Differential impact of microfinance delivery mechanism on vulnerability," Applied Economics Letters, Taylor & Francis Journals, vol. 19(8), pages 721-724, May.
  • Handle: RePEc:taf:apeclt:v:19:y:2012:i:8:p:721-724
    DOI: 10.1080/13504851.2011.597716
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    1. Ranjula Bali Swain & Maria S. Floro, 2010. "Reducing Vulnerability through Microfinance: Assessing the Impact of Self-Help Groups in India," Working Papers 2010-19, American University, Department of Economics.
    2. Bali Swain, Ranjula & Floro, Maria, 2010. "Reducing Vulnerability through Microfinance: Evidence from Indian Self Help Group Program," Working Paper Series 2010:23, Uppsala University, Department of Economics.
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