Does microfinance have an impact? Three quantitative approaches in rural areas of Bangladesh and Andhra Pradesh, India

González Carreras, Francisco Jose (2012) Does microfinance have an impact? Three quantitative approaches in rural areas of Bangladesh and Andhra Pradesh, India. Doctoral thesis (PhD), University of Sussex.

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Abstract

Microfinance has attracted, since its inception at the end of the seventies, the attention
of many people and institutions, both at academic and donor levels. However, evidence
is mixed so far and no definitive conclusion has yet emerged with respect to the positive
effects of microfinance, in part because of the great differences among the different
microfinance schemes but also because of methodological issues. This work aims to add
some further evidence to the impact debate, with three studies in two different rural
areas from Bangladesh and India.

The first study is based on the second round of a survey in Bangladesh undertaken by
the World Bank. A Propensity Score Matching approach was chosen to study the impact
of borrowing on household income and expenditures per capita. In this case positive
impact can only be seen in extraordinary expenditures, in particular in house extensions
and investments in houses and land, but not in current expenditures or food
expenditures.

The second and third studies analyse a dataset collected in five districts of Andhra
Pradesh, India. The former tries to answer the question of whether borrowing from Self-
Help groups (SHGs) has any effect on income and income per capita at household level.
Pooled ordinary least squares and difference in differences approaches are used to that
end. A significant impact is found in this study on income and income per capita.
In the last empirical work the main interest is focused on the distributional impact, on
the understanding that anti-poverty measures should be focused on households at the
bottom tail of income and income per capita distributions. Its analysis is based on
quantile regression, with cross sectional and panel data approaches. Distributional
impact shows, however, that the poorest might not be benefitting from these
interventions as much as better-off or not-so-poor households

Item Type: Thesis (Doctoral)
Schools and Departments: School of Business, Management and Economics > Economics
Subjects: D History General and Old World > DS History of Asia > DS393 Bangladesh. East Pakistan
D History General and Old World > DS History of Asia > DS401 India (Bharat)
H Social Sciences > HG Finance > HG0178 Liquidity
Depositing User: Library Cataloguing
Date Deposited: 13 Dec 2012 12:48
Last Modified: 08 Sep 2015 12:37
URI: http://sro.sussex.ac.uk/id/eprint/43098

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