Impact of Microfinance on Household Income: Evidence from Village Level Study in Orissa
This studies, the impact of microfinance interventions on the income of rural households in orissa. A stratified random sampling technique was employed to select households from four districts in the state of Orissa. The sample households were further classified into two groups according to their livelihood patterns: agriculture & allied activity and microenterprise & trading activity. A comparison between the target group of households participating in microfinance programs and a control group was carried out by a univariate z-test and by multiple regression analysis. The inequality in income distribution was analysed in terms of
the Gini coefficient and the Lorenz curve. The study provides strong evidence of the positive effect of microfinance programs on the income of the participating
Microfinance, Household income, Microenterprise, Gini coefficient
Buckley, G. (1997). Micro Finance in Africa : Is it either a
Problem or Solution? World Development,
(7) : 1081-1094.Dash, A. (2003). “Poverty
and Sustainability: Achieving Double Bottom
Line in Microfinance”. Paper Presented in 2nd
Impact Global Meeting, South Africa, May 5-
Dahiya, P.S., N.K. Pandey, and A. Karol (2001). “Socio-
Economic Evaluation of Self-Help Groups in
solan District of Himachal Pradesh : Impact,
Issues and Policy Implications”. Indian
Journal of Agriculture Economics, 56(3) :
Desilva, D. and N. Denby (1992). Banking the Unbankable
:Bring Credit to the Poor. New Delhi :
Horizon India Books.Guide.Kumarian Press Inc., Bloomfield CT, 2005.
Hulme, D. (2000). “Is Microdebt Good for people ?A Note
on Dark side of Microfinance”.Small
Enterprise Development, 11(1) : 26-28.
Jain, R., R.K. Kushawaha, and A.K. Srivastava
(2003).“Socio-Economic Impact through
Self-Help Groups”.Yojana, July Issue : 11-12.
Kabber, N. (2001). “Conflicts over credit : Re-evaluating the
empowerment potential of loans to women in
rural Bangladesh”. World Development,
(1) : 63-84.
Kando, T. (2007).“Impact of Microfinance on Rural
Households in the Philippines.A Case Study
from the Special Evaluation Study on the
Effects of Microfinance Operations on Poor
Rural Households and the Status of
Women”.Operational Evaluation, Asian
Development Bank, Manila.
Kumari, Y.I. and B.S. Rao (2001). “Emergence of Women
Self-Help Groups and its Impact on Rural
Development : A Case Study in Krishna
District of Andhra Pradesh”. Indian Journal
of Agriculture Economics, 56(3) : 485.
Makina, D, and L.M. Malobola (2004). “Impact Assessment
of Microfinance Programmes, Including
Lessons from Khula Enterprise Finance”.
Development Southern Africa, 21(5) : 799-
Mishra, J.P., R.R. Verma, and V.K. Singh (2001).“Socio-
Economic Analysis of Rural Self-Help
Groups Scheme in Block Amaniganj, District
Faizabad (Uttar Pradesh)”.Indian Journal of
Agriculture Economics, 56(3) : 473-474.
Morduch, J. (1998). “Does Micro-finance Really Help the
Poor? New Evidence from Flagship Programs
in Bangladesh”.Manuscript of Harvard
University and Stanford University.
Nagayya, D. (2000). “Microfinance for Self Help
Groups”.Kurukshetra, 48(11) : 10-15.
Panda, D.J. (2009b). “Participation in Group based
Microfinance and its Impact on Rural
Households : A Quasi-experimental Evidence
from an India State”. Global Journal of
Finance and Management, 1(2) : 171-183.
Panda, D.K. (2008). “Performance of Self Help Groups
under Microfinance Programmes : Evidence
from a Tribal District of Orissa”. VikasVani
Journal, 2(3) : 51-60.
SIDBI (2008). “Assessing Development Impact of
Microfinance Programmes : Findings and
Policy Implications from a National Study of
Indian Microfinance Sector”. Small Industries
Development Bank of India, Lucknow, India.
Zewde, Z.N. and E. Tollens (2008). “Microfinance Impact
Evaluation at Household Level” in : Lazar, D.
and Palanichamy, P (eds.). Microfinance and
Poverty Eradication : Indian and Global
Experience. New Delhi : New Century
Publications, pp. 294-320.