Savings and asset allocation of households in Uganda

Kiiza, Barnabas; Pederson, Glenn D.

doi:10.1108/00214660680001192

Cited by 2 publications

(3 citation statements)

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“…Findings from the above studies show that prior research has been inconclusive in establishing a clear pattern of long-term contribution of microcredit to its recipients (Pitt and Khandker, 1998;Kiiza and Pederson, 2006;Rokhim et al, 2016;Shiferaw et al, 2017). Furthermore, not many such studies have been undertaken that focus on gender disaggregated effects [3] of microcredit and capital accumulation; hence, this study fills this gap and shows the direct implication of policy changes that promote microcredit financing.…”

Section: Introductionmentioning

confidence: 82%

“…A few studies have been done to assess if there has been any impact of these MFIs. For example, Kiiza and Pederson (2006), using primary data from Uganda to determine the savings and portfolio allocation behavior of households with and without access to formal financial services, find no significant difference between both types of households. This study therefore further investigates whether there has been a substantive impact of microcredit on the rural livelihoods of households in Uganda, especially among women recipients who are the most resource constrained vulnerable section of the population.…”

Section: Microcredit On Capital Accumulationmentioning

confidence: 99%

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Gender disaggregated effects of microcredit on capital accumulation in rural households

Isoto

Kraybill

2019

AFR

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Purpose The purpose of this paper is to contribute to the literature on microcredit impacts by quantifying the gender disaggregated effects of long-term borrowing on capital accumulation in order to address the existing gap. Separate models are estimated for male-headed and female-headed households to determine if the effects of microcredit differ between these gender types. Design/methodology/approach The paper adopts the method proposed by Deaton (1990) in which he specifies a model without borrowing restrictions whereby the household maximizes an inter-temporal utility function. To account for self-selection and endogeneity of micro credit, the fixed effects instrumental variable approach is used. Data are disaggregated by gender and analyzed separately. Findings The paper finds that micro credit indeed increases productive assets and human capital but has no significant effect on non-productive assets. One striking result is that after disaggregating the data by gender, the authors find no effect of micro credit on women-headed households. Practical implications The paper provides an empirical evidence for the need to address gender issues in finance and lending. Furthermore, targeted lending particularly to women makes a great difference in the fight against poverty. Originality/value This paper fills the gap on gender and micro credit impacts on capital accumulation in a developing country context.

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Section: Introductionmentioning

confidence: 82%

Section: Microcredit On Capital Accumulationmentioning

confidence: 99%

Gender disaggregated effects of microcredit on capital accumulation in rural households

Isoto

Kraybill

2019

AFR

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“…Inter-temporal consumption smoothing through savings helps households deal with income shocks or unexpected increases in expenditures. In Uganda vulnerable HHs self-insure against idiosyncratic risks across periods by holding precautionary savings in the form of relatively liquid assets (Kiiza & Pederson, 2006). Thus households that hold precautionary savings are able to adjust their income and consumption and in turn stabilize their food security through diet diversity, quantity and quality of food.…”

Section: Access To Financial Services and Household Welfare Condition...mentioning

confidence: 99%

The Impact of Access to Finance on Household Welfare: Revisiting the Evidence from Uganda

Kiiza¹,

Omiat²

2022

IJAFS

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Our paper highlights the role played by semiformal financial institutions in the livelihoods of Ugandan households that are not served by the commercial banks and microfinance institutions. Data from Living Standards Measurement Survey 2018 Uganda are used. We employ Propensity Score Matching and complement this with the two-step IV Treatment Effects method. We compare the effect of access to services from banks, Village Savings and Loans Associations, Rotating Savings and Credit Associations, and Savings and Credit Cooperatives on household welfare. We find a positive and statistically significant impact of access to both bank and semiformal financial services on household dietary diversity score; school enrollment rates; and clothing expenditure. The improvement in household welfare due to VSLAs, ROSCAs and SACCOs is comparable to that conferred by banks upon their customers. The results are robust to the method of estimation and we show that confounding factors are not a serious problem in our average treatment of the treated estimations. We also examine only those households that: (i) experienced drought; (ii) experienced drought, pests and heavy rains; (iii) were rural; (iv) had farming as main occupation; (v) were male-headed; (vi) had an education level below sample average. We find that in all cases bank, VSLA, ROSCA and SACCO member households have higher household dietary diversity score, school enrollment rates and clothing expenditure than control households. The policy implication from this study is that the improvement in welfare due to VSLAs, ROSCAs and SACCOs is relatively comparable to that obtained by commercial bank customers. Thus there is need to increase the geographic spread and depth of financial outreach of these semiformal institutions to increase the scale of financial inclusion in Uganda.

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Savings and asset allocation of households in Uganda

Cited by 2 publications

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Gender disaggregated effects of microcredit on capital accumulation in rural households

Gender disaggregated effects of microcredit on capital accumulation in rural households

The Impact of Access to Finance on Household Welfare: Revisiting the Evidence from Uganda

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