Microfinance and Household Poverty Reduction: New Evidence from IndiaCitation formats

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Microfinance and Household Poverty Reduction: New Evidence from India. / Imai, Katsushi S.; Arun, Thankom; Annim, Samuel Kobina.

In: World Development, Vol. 38, No. 12, 12.2010, p. 1760-1774.

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Imai, KS, Arun, T & Annim, SK 2010, 'Microfinance and Household Poverty Reduction: New Evidence from India', World Development, vol. 38, no. 12, pp. 1760-1774. https://doi.org/10.1016/j.worlddev.2010.04.006

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Imai, Katsushi S. ; Arun, Thankom ; Annim, Samuel Kobina. / Microfinance and Household Poverty Reduction: New Evidence from India. In: World Development. 2010 ; Vol. 38, No. 12. pp. 1760-1774.

Bibtex

@article{9267aba20ee8424e8765fdeed003c030,
title = "Microfinance and Household Poverty Reduction: New Evidence from India",
abstract = "The objective of the present study is to examine whether household access to microfinance reduces poverty. Using national household data from India, treatment effects model is employed to estimate the poverty-reducing effects of Micro Finance Institutions (MFIs) loans for productive purposes, such as investment in agriculture or non-farm businesses on household poverty levels. These models take into account the endogenous binary treatment effects and sample selection bias associated with access to MFIs. Despite some limitations, such as those arising from potential unobservable important determinants of access to MFIs, significant positive effect of MFI productive loans on multidimensional welfare indicator has been confirmed. The significance of {"}treatment effects{"} coefficients has been verified by both Tobit and Propensity Score Matching (PSM) models. In addition, we found that loans for productive purposes were more important for poverty reduction in rural than in urban areas. However in urban areas, simple access to MFIs has larger average poverty-reducing effects than the access to loans from MFIs for productive purposes. This leads to exploring service delivery opportunities that provide an additional avenue to monitor the usage of loans to enhance the outreach. {\textcopyright} 2010 Elsevier Ltd.",
keywords = "Microfinance",
author = "Imai, {Katsushi S.} and Thankom Arun and Annim, {Samuel Kobina}",
year = "2010",
month = dec,
doi = "10.1016/j.worlddev.2010.04.006",
language = "English",
volume = "38",
pages = "1760--1774",
journal = "World Development",
issn = "0305-750X",
publisher = "Elsevier BV",
number = "12",

}

RIS

TY - JOUR

T1 - Microfinance and Household Poverty Reduction: New Evidence from India

AU - Imai, Katsushi S.

AU - Arun, Thankom

AU - Annim, Samuel Kobina

PY - 2010/12

Y1 - 2010/12

N2 - The objective of the present study is to examine whether household access to microfinance reduces poverty. Using national household data from India, treatment effects model is employed to estimate the poverty-reducing effects of Micro Finance Institutions (MFIs) loans for productive purposes, such as investment in agriculture or non-farm businesses on household poverty levels. These models take into account the endogenous binary treatment effects and sample selection bias associated with access to MFIs. Despite some limitations, such as those arising from potential unobservable important determinants of access to MFIs, significant positive effect of MFI productive loans on multidimensional welfare indicator has been confirmed. The significance of "treatment effects" coefficients has been verified by both Tobit and Propensity Score Matching (PSM) models. In addition, we found that loans for productive purposes were more important for poverty reduction in rural than in urban areas. However in urban areas, simple access to MFIs has larger average poverty-reducing effects than the access to loans from MFIs for productive purposes. This leads to exploring service delivery opportunities that provide an additional avenue to monitor the usage of loans to enhance the outreach. © 2010 Elsevier Ltd.

AB - The objective of the present study is to examine whether household access to microfinance reduces poverty. Using national household data from India, treatment effects model is employed to estimate the poverty-reducing effects of Micro Finance Institutions (MFIs) loans for productive purposes, such as investment in agriculture or non-farm businesses on household poverty levels. These models take into account the endogenous binary treatment effects and sample selection bias associated with access to MFIs. Despite some limitations, such as those arising from potential unobservable important determinants of access to MFIs, significant positive effect of MFI productive loans on multidimensional welfare indicator has been confirmed. The significance of "treatment effects" coefficients has been verified by both Tobit and Propensity Score Matching (PSM) models. In addition, we found that loans for productive purposes were more important for poverty reduction in rural than in urban areas. However in urban areas, simple access to MFIs has larger average poverty-reducing effects than the access to loans from MFIs for productive purposes. This leads to exploring service delivery opportunities that provide an additional avenue to monitor the usage of loans to enhance the outreach. © 2010 Elsevier Ltd.

KW - Microfinance

U2 - 10.1016/j.worlddev.2010.04.006

DO - 10.1016/j.worlddev.2010.04.006

M3 - Article

VL - 38

SP - 1760

EP - 1774

JO - World Development

JF - World Development

SN - 0305-750X

IS - 12

ER -