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on Microfinance |
| By: | Mathilde Bauwin; Walid Jbili |
| Abstract: | Whereas most research into microfinance tends to focus on the impact of access to such services, very little pays attention to what happens over time once a person becomes a client. The paper aims at analysing the conditions of loan renewals as most microfinance institutions foster client retention and apply a progressive lending policy. Moreover, as previous studies have shown that women are not always favoured regarding loan amounts granted, the progressive lending policy is analysed from a gender perspective. The work is based on a case study about the main Tunisian microfinance institution using longitudinal client data. The analysis focuses on the growth rate of amounts granted over credit cycles. As some clients leave the microfinance institution after one or several loans, we follow a procedure enabling us to correct the selection bias with panel data. The results show that, all things being equal, the growth rates tend to increase over cycles, probably reflecting an increasingly trusting relationship between the microfinance institution and its clients. However, this increase is slower for women, revealing a less favourable progressive lending policy towards women. Consequently, as women already start from a lower position, initial inequalities cannot be counterbalanced. |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2017-101&r=mfd |
| By: | Emla Fitzsimons (Institute for Fiscal Studies and Institute of Education, University of London); Bansi Malde (Institute for Fiscal Studies and Institute for Fiscal Studies); Marcos Vera-Hernandez (Institute for Fiscal Studies and University College London) |
| Abstract: | Community-based interventions, particularly group-based ones, are considered to be a cost-effective way of delivering interventions in low-income settings. However, design features of these programs could also influence dimensions of household and community behaviour beyond those targeted by the intervention. This paper studies spillover effects of a participatory community health intervention in rural Malawi, implemented through a cluster randomised control trial, on an outcome not directly targeted by the intervention: household consumption smoothing after crop losses. We find that while crop losses reduce consumption growth in the absence of the intervention, households in treated areas are able to compensate for this loss and perfectly insure their consumption. Asset decumulation also falls in treated areas. We provide suggestive evidence that these effects are driven by increased social interactions, which could have alleviated contracting frictions; and rule out that they are driven by improved health or reductions in the incidence of crop losses. |
| Keywords: | participatory community interventions, spillovers, consumption smoothing, Sub-Saharan Africa |
| JEL: | E21 G22 O12 O13 |
| Date: | 2016–10–18 |
| URL: | http://d.repec.org/n?u=RePEc:ifs:ifsewp:16/18&r=mfd |
| By: | Lansigan, Felino P.; Reano, Consorcia E.; Comia, Liza N.; Tandang, Nancy A.; Collado, Roselle V.; Reyes, James Roldan S.; Arana, Rachelyn S.; Roldan, Ronald Jr. R.; Marcelino, Rocky T.; Mendoza, Jared Jorim O.; Talento, Mara Sherlin D.; Gayosa, Edrun R.; Almero, Leonard Alan F. |
| Abstract: | The evaluation of the impact of agricultural insurance program of the Philippine Crop Insurance Corporation on coconut farmers in Region IV-A (CALABARZON) was conducted from October 2015 to July 2016. The main instrument for conducting impact evaluation was the Coconut Farmers Survey which covered the provinces of Batangas, Cavite, Laguna, and Quezon with a random sample of 500 coconut farmers. The 500 samples comprised the random sample of 250 matched pairs of coconut farmers. Each pair was composed of a farmer with insurance and a farmer without insurance. Farmers with insurance were classified further into two groups, namely, those with claims and those without claims. A proportional allocation scheme with groups and farm size as stratification variables was used. For each of the two insurance groups, three strata were formed defined according to farm size: Stratum 1 - 0.5 ha and below; Stratum 2 – greater than 0.5 to 1 ha; and Stratum 3 - greater than 1 ha. Farmer, farm, and household characteristics were obtained by interviewing the farmers using a structured survey questionnaire. The farmers cited the following: 1) adverse weather conditions, 2) low farm gate prices, and 3) pests and diseases as the three most important problems. Although the study was conducted to assess the impact of agricultural insurance, it was worth noting that a significant proportion of coconut farmers were not aware of existing programs such as crop insurance. The study revealed that lack of awareness among coconut farmers on the availability of insurance products was a big problem. Some of the farmers who have been granted free insurance were not aware that they were insured. Among the most common and important reasons for non-availment of crop insurance were the lack of awareness on the availability of crop insurance products, lack of information on how to process insurance documents, and the belief that there was no need for insurance. No significant differences in mean income from coconut production were observed between the two groups with insurance, with claims and without claims, across farm sizes 0.5 ha and below and greater than 0.5 to 1 ha. Significant differences were detected only for farmers with farm sizes greater than 1 ha. The results were consistent across 2014 and 2015. When pooled, no differences were obtained between the group with insurance and the group without insurance. Results showed that the only characteristic associated with whether or not the farmer is insured is if the farmer is keen on joining farmers' organizations. Although the farmers think that having insurance is advantageous, most farmers were not willing to pay any premium. |
| Keywords: | Philippines, impact evaluation, , Philippine Crop Insurance Corporation, crop insurance, agricultural insurance, coconut, PCIC, CALABARZON, coconut farmers |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2017-15&r=mfd |
| By: | Conrado, Vilma; Tuscano, Jocelyn; Oñate, Beatriz; Torio, Erwin; Umengan, Jane; Paat, Nina Klare |
| Abstract: | This study aims to evaluate the impact of agricultural insurance of the Philippine Crop Insurance Corporation (PCIC) on corn farmers in the Cagayan Valley Region, Philippines. A total of 500 corn farmers were classified into the following treatments: 250 corn farmers with insurance (118 with indemnity claims and 132 without indemnity claims) randomly taken from PCIC agricultural insurance subscribers for 2014 and 2015 matched with 250 without insurance from the Registry System for Basic Sectors in Agriculture list. These treatment groups were further divided according to farm size groups. Regression analysis was used to determine the demand on agricultural insurance and the t-test was used to test the difference on net farm income on corn production between treatment groups. The results show that the factors affecting the probability of PCIC insurance availment by corn farmers are farm size, government transfer income, adoption of hybrid variety, land tenure, and the distance of farmer to PCIC office. Farmers with crop insurance tend to have significantly higher adoption rate of hybrid variety than farmers without crop insurance. The larger the farm size, the higher the probability of getting insurance for their corn farms. Corn farmers who do not own the land they farm and those who received higher government transfers tend to have higher probability of getting agricultural insurance. Farmers with insurance with claim have significantly higher net incomes per hectare than those without insurance. When farmers were not grouped by farm size, farmers with insurance with claims have higher net incomes than farmers with insurance but without indemnity claims in 2014 and 2015. Similar result was found in large farms (greater than 1.0 ha) when farmers were grouped according to farm size. Therefore, there is significant impact of receiving indemnity claims on the net farm income of farmers in corn production. Hence, it is recommended that policies, programs, and efforts of the government and the PCIC be directed toward enhancing the factors that increase the availment of and review of indemnity coverage of agricultural insurance. |
| Keywords: | Philippines, impact evaluation, Philippine Crop Insurance Corporation, crop insurance, agricultural insurance, corn, PCIC, corn production, Cagayan Valley, Registry System for Basic Sectors in Agriculture |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2017-12&r=mfd |