IDEAS home Printed from https://ideas.repec.org/p/nan/wpaper/2001.html
   My bibliography  Save this paper

Impact of Joining Rotating Savings and Credit Association (ROSCA) on Household Assets in Indonesia

Author

Listed:
  • Shochrul Rohmatul Ajija

    (Universitas Airlangga, Indonesia)

  • Asif Iqbal Siddiqui

    (Nanyang Technological University, Singapore)

Abstract

The purpose of the research is evaluating the impact of Rotating Savings and Credit Association (RoSCA) in Indonesia, locally known as arisan on household assets of the participants. We use the Indonesian Family Life Survey (IFLS) data collected in 2000, 2007 and 2014 which contains demographic and household data of the arisan participants (i.e. affected group) and the non-participants (i.e. control group). We apply the Double Difference (DD) method in order to measure the impact of arisan participation on the household assets. The results of the DD estimation show that the participation in the association has a positive impact on the total household assets of the participants, although it has a mixed impact on the different categories of the household assets listed in IFLS data such as house, land, vehicles, appliances, furniture, appliances, jewelleries and savings. Finally, the implication of the results has been in discussed in the context of this long tradition of arisan participation in Indonesia along with its co-benefits. Despite arisan being is a special form of informal micro-savings institution prevalent for many centuries in Indonesia, there has not been adequate academic research on its economic implications where this paper intends to contribute.

Suggested Citation

  • Shochrul Rohmatul Ajija & Asif Iqbal Siddiqui, 2020. "Impact of Joining Rotating Savings and Credit Association (ROSCA) on Household Assets in Indonesia," Economic Growth Centre Working Paper Series 2001, Nanyang Technological University, School of Social Sciences, Economic Growth Centre.
    • Handle: RePEc:nan:wpaper:2001
    as

    Download full text from publisher

    File URL: https://web.hss.ntu.edu.sg/egc/wp/2020/2020-01.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

    Statistics

    Access and download statistics

    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:nan:wpaper:2001. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Magdalene Lim (email available below). General contact details of provider: https://edirc.repec.org/data/dentusg.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.