nep-mfd New Economics Papers
on Microfinance
Issue of 2014‒08‒20
three papers chosen by
Olivier Dagnelie
Université de Namur

  1. Impact of Village Savings and Loans Associations: Evidence from a Cluster Randomized Trial By Christopher Ksoll; Helene Bie Lilleør; Jonas Helth Lønborg; Ole Dahl Rasmussen
  2. Assessment of Microinsurance as Emerging Microfinance Service for the Poor: The Case of the Philippines By Asian Development Bank (ADB); ; ;
  3. Financial Literacy and Its Consequences in the Emerging Middle Class By Antonia Grohmann; Roy Kouwenberg; Lukas Menkhoff

  1. By: Christopher Ksoll (Ottawa University); Helene Bie Lilleør (The Rockwool Foundation Research Unit); Jonas Helth Lønborg (University of Southern Denmark); Ole Dahl Rasmussen (University of Southern Denmark & DanChurchAid)
    Abstract: Seventy percent of the world’s poorest live in rural areas in developing countries with poor access to finance. Village Savings and Loan Associations (VSLAs) have become an increasingly widespread intervention aimed at improving local financial intermediation. Using a cluster randomized trial, we investigate the impact of VSLAs in forty-six villages in Malawi. We find positive and significant intent-to-treat effects on the number of meals consumed per day, total household consumption, and number of rooms in the dwelling over a two-year period. This effect is linked to an increase in savings and credit obtained through the VSLAs, which has increased agricultural investments.
    Keywords: Saving groups; Village Savings and Loan Associations; VSLA; Malawi; Impact evaluation; cluster-randomized controlled trial
    JEL: O16 O13
    Date: 2013–08
  2. By: Asian Development Bank (ADB); (Southeast Asia Department, ADB); ;
    Abstract: The Asian Development Bank (ADB) has been one of the few active partners for microfinance development in the Philippines. It has contributed to the growth of formal microfinance activities, including expanding the outreach of diversified formal financial services to poor clients at the most affordable costs. The risk of making poor clients worse off because of unexpected events gave rise to the formation of ADB’s intervention focusing on microinsurance development. This report provides the initial sector assessment on emerging microinsurance activities and hopefully guidance on the way forward.
    Keywords: microinsurance, microfinance, credit,  low-income people, climate change, natural disasters, premiums , caps, microfinance institutions, financial services, coverage, risks, health insurance, disability insurance, crop insurance, cattle insurance, banks, cooperatives
    Date: 2013–03
  3. By: Antonia Grohmann; Roy Kouwenberg; Lukas Menkhoff
    Abstract: This paper analyzes the state and impact of financial literacy in a so far largely neglected group: the middle class in emerging economies. This group is of increasing importance for implementing structural change, including the proper use of sophisticated financial products. We survey middle class people living in Bangkok and find that higher financial literacy leads to an increased probability of individuals demanding the sophisticated financial products that are available, and more informed use of credit cards. Overall, improving the financial literacy of the emerging middle class provides a double dividend: it increases the welfare of this group and also contributes to financial development, which is a driver of growth
    Keywords: Financial literacy, Saving, Borrowing, Development, Instruments
    JEL: D14 G11 G14
    Date: 2014–07

This nep-mfd issue is ©2014 by Olivier Dagnelie. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.