Impact of Microfinance on Women Empowerment: An Empirical Evidence from Andhra Pradesh

CH, Sujatha Gangadhar

doi:10.4172/2169-026x.1000141

Cited by 14 publications

(12 citation statements)

References 15 publications

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“…Heng (2015) made an evaluation of the impact of the New Financial Services Law in Bolivia and he found that the interest rate caps had an effect on financial inclusion, especially for small borrowers, as microfinance institutions had increased loan sizes and reduced the number of borrowers. 2 Gangadhar and Malyadri (2015) add that women's economic empowerment through microfinance translates into better family decision-making, economic security, and legal awareness, and when combined with participation in seminars, workshops and training, they not only provide self-employment training but also facilitate good decision-making. 3 Because of the ethnic diversity in Bolivia, La Paz and El Alto should not be considered representative of the Bolivian population, that is, the results are not generalizable at national level.…”

Section: Endnotesmentioning

confidence: 99%

The interaction effect of gender and ethnicity in loan approval: A Bayesian estimation with data from a laboratory field experiment

Martínez

Aguilera-Lizarazu²,

Rojas-Hosse³

et al. 2019

Review Development Economics

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Microfinance targets women and uses loan provision as a tool for empowerment, which translates into better household nutrition, improved education, and a scale down of domestic violence. However, ethnic discrimination in microfinance may exist in countries with a segregated indigenous population. We assessed this possibility with a field experiment in Bolivia. The controlled laboratory experiment evaluated whether credit officers rejected microloan applications based on the interaction effect of ethnicity and gender of potential borrowers. Point estimates of a Bayesian mixed‐effects logistic regression, estimated with the experimental data, indicate that nonindigenous women have double the chance of loan approval, but indigenous women have only 1.5 times the chance of loan approval when compared with men. While the findings about gender are limited, the evidence for the interaction of gender and ethnicity is more robust and suggests the existence of positive taste‐based discrimination favorable for nonethnic women in Bolivia. We conclude that the affirmative actions towards women promoted by development agencies and microfinance institutions must not overlook ethnicity as an important factor for financial policies of sustainable development. In practice, these policies should be aimed at identifying and reducing both social desirability bias and the structural barriers to financial inclusion that indigenous women may face when trying to obtain access to a loan.

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Section: Endnotesmentioning

confidence: 99%

The interaction effect of gender and ethnicity in loan approval: A Bayesian estimation with data from a laboratory field experiment

Martínez

Aguilera-Lizarazu²,

Rojas-Hosse³

et al. 2019

Review Development Economics

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“…Similarly, Littlefield et al (2003) reported that, since microfinance programs have generally targeted women as clients, access to it empowers women to have high confidence, high participation in family and community decision making, and have high ability to challenge systemic gender inequities. Another study by Gangadhar and Malyadri (2015) revealed that microcredit is an influential tool in improving women empowerment of women for its all indicators such as household decision making, physical mobility, economic security, and so on. Through loans microfinance institutions also empowers women and enable them for greater autonomy and decision-making.…”

Section: Literature Reviewmentioning

confidence: 99%

The Role of Microfinance Institutions in Empowering Women in Eritrea

2019

EJBM

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The purpose of this study was to examine the role of microfinance on women's empowerment. A comparative cross-sectional survey was conducted in Eritrea. This study used a quasi-experimental design that requires treatment and control groups. The data collected from a sample of 399 new and old women clients of the saving and microcredit program were used to analyze the role of microcredit services on women empowerment. Evidence from this study shows that participation in saving and microcredit programs (SMCP), increases the purchase of personal consumer goods, the degree of respect for women clients from their spouses, and next in kin and women's degree of social recognition. On the other side, the majority of participants asserted that decision-making ability in children's education, food expense, savings, business purchases, use of loans, and profits is shared with their spouses regularly. The findings of the study can help policymakers to design strategies that encourage more women to participate in microcredit programs to achieve their empowerment.

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“…Contradictory to Koubȃa (2014) who claim that microfinance programs fail to reach the poorest, generally have a limited effect on income. Robinson (2002) as cited in Gangadhar (2015) indicates that microfinance helps poor people to increase, protect and diversify their income, as well as to accumulate assets, reducing their vulnerability to income and consumption shocks. Microfinance should be directed for investment purposes only, not for consumption smoothing to meet short term household expenditure on food; however, the main impact of microenterprise programs in both the first and third worlds is not to increase income but rather to smooth income in the face of shocks (Taub, 1998;Sherraden et al, 1998;Morduch 1998as cited in Schreiner, 2011 A study in Central America by (Hiatt and Woodworth, 2006) revealed that there is an increase for the daily earning for clients who participated in their village bank for more than a year.…”

Section: Background Of Researchmentioning

confidence: 99%

To What Extent Micro Lending Institution’s Policy Help to Improve Income and Employment Prospects of Women Startups: Case Study from Jordan

Maaitah¹

2019

JSBED

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Our descriptive correlational study used Regression analysis to investigate the impact of microenterprises offered by lending institutions on the level of income and job creation of women startups in Jordan. Our independent variables will be policies practiced in lending institutions (lending, profitability, monitoring and following up and non-financial policy). The study used a mixed-method combining between quantitative and qualitative data through questionnaire survey, in-depth interview, published and unpublished reports. A sample of 385 women loan recipients was selected randomly from the leading microlending institutions in Jordan. Our findings indicate a positive impact for lending, monitoring and following up and non-financial policy on borrower's level of income. It has not been shown any effect of profitability policy on the level of income. We also find that profitability, monitoring and following up and non-financial policy have an impact on job creation. However, it has not been shown any effect of lending policy on job creation. Terms and conditions of loans contribute to providing income security to participants but do not contribute to creating employment opportunities. The current incentive for financial sustainability can trigger mission drift.

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Impact of Microfinance on Women Empowerment: An Empirical Evidence from Andhra Pradesh

Cited by 14 publications

References 15 publications

The interaction effect of gender and ethnicity in loan approval: A Bayesian estimation with data from a laboratory field experiment

The interaction effect of gender and ethnicity in loan approval: A Bayesian estimation with data from a laboratory field experiment

The Role of Microfinance Institutions in Empowering Women in Eritrea

To What Extent Micro Lending Institution’s Policy Help to Improve Income and Employment Prospects of Women Startups: Case Study from Jordan

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