Growth and distribution of microfinance in India: A panel data analysis
This paper analyses large panel of Self-Help Group (SHG) financing across 30 Indian states over the period 2007 to 2015. Classifying the panel across four different bank based on financing, we find a significant and positive association of both outstanding loan and savings of SHGs to that of bank fi...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
General Association of Economists from Romania
2017-03-01
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| Series: | Theoretical and Applied Economics |
| Subjects: | |
| Online Access: |
http://store.ectap.ro/articole/1250.pdf
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| Summary: | This paper analyses large panel of Self-Help Group (SHG) financing across 30 Indian
states over the period 2007 to 2015. Classifying the panel across four different bank based on
financing, we find a significant and positive association of both outstanding loan and savings of
SHGs to that of bank financing across the states. Applying panel regression frameworks of both
time varying and state specific fixed effects, we have obtained positive association between
outstanding loans, savings rate of SHGs to that of bank loans. Our panel model has further
confirmed that increases in the number of SHGs have positively influenced the bank loans
particularly from public and private sectors over the years. The results thus suggest that financial
inclusion drive in India has made financial institutions across the sectors to extend loan for small
sector initiatives. |
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| ISSN: | 1841-8678 1844-0029 |