Presentation by Prof. Ranjula Bali Swain: "The Impact of Microfinance on Factors Empowering Women: Regional and Delivery Mechanisms in India's SHG Programme" IFPRI Gender Methods Seminar, July 20, 2015 View the screencast here: https://www.dropbox.com/s/g18m8lwcz4ohoky/2015-07-20%2013.04%2007_20_15%20Gender%20Methods%20Seminar%20-%20SHGs%20by%20Ranjula%20Bali%20Swain%20%28Sophie%20Theis%29.mp4?dl=0 We examine how the impact on women empowerment varies with respect to the location and type of group linkage of the respondent. Using household survey data from five states in India, we correct for selection bias to estimate a structural equation model. Our results reveal that in the southern states of India empowerment of women takes place through economic factors. For the other states, we find a significant correlation between women empowerment and autonomy in women’s decision-making and network, communication and political participation respectively. We do not however find any differential causal impact of different delivery methods (linkage models).

1. The Impact of Microfinance on
Factors Empowering Women:
Regional and Delivery Mechanisms
in India’s SHG Programme
Ranjula Bali Swain, Department of Economics,
Uppsala University & Södertörn University, Stockholm
(with Fan Yang-Wallentin, Department of Statistics, Uppsala
University)
IFPRI Seminar, Washington D.C,
20 July 2015
1

2. • Objective
• Literature and past research
• Self Help Groups Bank Linkage program
(SBLP)
• Econometric Estimation
• Results
1. Outline
2

3. Investigate how the regionally imbalanced
microfinance development and type of delivery
mechanisms (linkage models) have resulted in
significant differences in the process of women
empowerment in India?
•Location (south states, other states)
•Type of group linkage
Group maturity (comparing old and new with control)
Different education categories (uneducated, primary, secondary or
higher education)
2. Research Objective
3

4. • Household Bargaining literature (Browning &
Chiappori 1998; Karlan & Yin 2006; Armadariz &
Morduch 2005; Duflo 2003)
• Autonomy & Decision making (Anderson &
Eswaran 2005; Goetz & Gupta 1996)
• Political & Social Inclusion (Armedariz &
Morduch 2010; Dijkstra 2002; Beteta 2006)
• Large body of empirical literature
3. Literature
4

5. • Does Microfinance (SHG) Empower Women?
(Bali Swain and Wallentin, 2009) – Yes, significant
empowerment (25% more) of SHG treated group
as compared to control group
• Within Microfinance (SHG) which factors are
more empowering? (Bali Swain and Wallentin,
2012) – Economic factor is the most empowering.
Greater autonomy and social attitudes have a
significant impact on women empowerment
Related Earlier Work
5

6. Economics of Development Lecture 3 6
Self Help Group Bank Linkage
Programme 6

7. By 31 March 2010
about 7 million savings-linked Self Help
Groups (SHG)
more than 4.9 million credit linked SHGs
covering 97 million poor households under
microfinance program.
4. SHG Bank Linkage Program
7

8. Empowerment of women is interpreted as a
process in which women challenge the existing
norms and culture, to effectively improve their well
being (Bali Swain 2007, Bali Swain and Wallentin
2009, Bali Swain and Wallentin 2012).
Efficiency improving activities (existing gender
norms) ; community development activities – not
necessarily empowering the women
Women empowerment – multi-locational (Johnson,
Kabeer )
Women Empowerment
8

9. • Structural Equation Model
Measurement model: measures latent factors that have an
impact on women empowerment using observable indicators
Structural model: use factor loadings of the latent factors to
measure the impact on the latent women empowerment
variables
Estimation: Robust maximum likelihood (RML) method
Statistical package: LISEL
See Path Diagram
5. Estimation Strategy
9

10. Structural Equation Model
10

11. SIAS Data:
5 states
659 households

12. 5. Results
12

13. Differential impact in States
13

14. Covariance matrix of independent variables
and women empowerment
for the SHG members
14

15.  Southern States women empowerment of
women through economic factors
 Other States – significant correlation between
women empowerment and autonomy in
women’s decision-making & network;
communication & political participation
respectively
 No differential causal impact of different
delivery (linkage) methods on empowerment
Impact is Differential!
15

16. Thank you for your attention!
Ranjula.Bali@nek.uu.se
16