nep-mfd New Economics Papers
on Microfinance
Issue of 2012‒06‒13
five papers chosen by
Olivier Dagnelie
Instituto de Analisis Economico, CSIC

  1. Microfinance and its role in household poverty reduction: findings from Pakistan By Asad K. Ghalib; Issam Malki; Katsushi S. Imai
  2. Does Microcredit Create Over-indebtedness? By Sk. Mahmudul Alam, Mahmud
  3. Enhancement of social capital through participation in micro-finance: an empirical investigation By Kundu, AMIT
  4. Le capital institutionnel dans l'analyse du développement : Prolongement théorique et premier test empirique By Paul, Bénédique; Garrabé, Michel
  5. Calamity, Aid and Indirect Reciprocity: the Long Run Impact of Tsunami on Altruism By Leonardo Becchetti; Stefano Castriota; Pierluigi Conzo

  1. By: Asad K. Ghalib; Issam Malki; Katsushi S. Imai
    Abstract: Abstract This study examines whether household access to microfinance reduces poverty, and if so, to what extent and across which dimensions of wellbeing. The study draws on first-hand observations and empirical data gathered from interviews of 1,132 households across 11 districts in the rural areas of the province of Punjab in Pakistan. It employs a quasi-experimental research design and makes use of data collected by interviewing both borrower (treatment) and non-borrower (control) households. Sample selection biases are controlled by matching propensity scores. Findings reveal that although borrowers seem to fare better than non-borrowers across around 70 percent of the indicators, a majority of these are not statistically significant. This suggests that despite producing some degree of positive impact, microfinance institutions still have to make sustained efforts to bring about real difference to the livelihoods of the poor.
    Date: 2012
  2. By: Sk. Mahmudul Alam, Mahmud
    Abstract: In the context of the present crisis of microfinance, it is quite common to use the term over-indebtedness among the poor. Coming up with a precise definition of over-indebtedness for research or regulatory purposes is surprisingly a complex challenge. Few of researchers took attempt to define and measure over-indebtedness among microfinance borrowers. Among them Maurer and Pytkowska (2010); Spannuth & Pytkowska (2011) and Schicks (2011) are notable. But their definition and measurement process of over-indebtedness are not unique. Maurer and Pytkowska showed that by taking microcredit, 17% borrowers are over-indebted and 11% borrowers are at risk of becoming over-indebted in Bosnia and Herzegovina. Spannuth & Pytkowska demonstrated that 7% borrowers are insolvent, 4% borrowers are in critical position and 14% are at risk of becoming over-indebted in Kosovo. Schicks displayed that 30% borrowers are over-indebted in Ghana. The endeavor of this paper is to show the real fact whether microcredit creates over-indebtedness among its borrowers or not.
    Keywords: Microcredit; Borrowers; Over-indebtedness
    JEL: H63 G21
    Date: 2012–05–30
  3. By: Kundu, AMIT
    Abstract: Generation of social capital among the poor village women through micro-finance participation emerges an important aspect of rural development programme. This paper presents a method of calculating Social Capital Index and on the basis of two periods longitudinal primary data establishes the fact that enhancement of the value of Social Capital Index is more among the participants of micro-finance programme under SGSY scheme than the nonparticipants
    Keywords: Micro-finance; Social Capital; Impact Evaluation
    JEL: C90 I38 G21
    Date: 2011–06–10
  4. By: Paul, Bénédique; Garrabé, Michel
    Abstract: Microfinance has made and continues to do a lot of debate. In these debates, an under-documented aspect is the impacts on recipients’ behavior. Through an empirical study on a sample of 500 beneficiaries of microfinance in Haiti, we mobilize the new theoretical framework of institutional capital to analyze this under-explored socio-economic aspect, through a multiple capitals approach of economic development. The results of the study show that the contribution of microfinance organizations includes institutional capital, and this asset influences beneficiaries’ socio-economic behavior, both in terms of consumption and savings, and in the observance of the repayment agreement.
    Keywords: Organisations de microfinance; MFO; capital institutionnel; comportements socio-économiques; Haïti
    JEL: D03 B52 G21 N26
    Date: 2011–07–06
  5. By: Leonardo Becchetti (Università di Roma "Tor Vergata"); Stefano Castriota (Università di Roma "Tor Vergata"); Pierluigi Conzo (Università di Napoli and CSEF)
    Abstract: Natural disasters have been shown to produce effects on social capital, risk and time preferences of victims. We run experiments on altruistic preferences on a sample of Sri Lankan microfinance borrowers affected/unaffected by the tsunami shock in 2004 at a 7-year distance from the event (a distance longer than in most empirical studies). We find that people who suffered at least a damage from the event behave in dictator games less altruistically as senders (and expect less as receivers) than those who do not report any damage. Interestingly, among damaged, those who suffered also house damages or injuries send (expect) more than those reporting only losses to the economic activity. Since the former are shown to receive significantly more help than the latter we interpret this last finding as a form of indirect reciprocity.
    Keywords: tsunami, disaster recovery, social preferences, altruism, development aid
    JEL: C90 D03 O12
    Date: 2012–05–30

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