Scholarly article on topic 'The Impact of Microfinance on Poverty Reduction: Empirical Evidence from Malaysian Perspective'

The Impact of Microfinance on Poverty Reduction: Empirical Evidence from Malaysian Perspective Academic research paper on "Economics and business"

CC BY-NC-ND
0
0
Share paper
OECD Field of science
Keywords
{Malaysian / Microfinance / "Poverty Reduction"}

Abstract of research paper on Economics and business, author of scientific article — Sayed Samer, Izaidin Majid, Syaiful Rizal, M.R. Muhamad, Sarah-Halim, et al.

Abstract Microfinance became a buzzword in the credit markets as an effective tool for poverty reduction and socioeconomic development. Yet, the impact still questioned and varies from one country to others and from urban to rural. The aim of this paper was to examine the role of Malaysian microfinance Amanah Ikhtiar Malaysia (AIM) on household income. A cross-sectional survey interviewed 780 from old and new clients in Selangor and Melaka states in Malaysia. The stratified random method was used to collect the data from urban and rural districts. The finding of multinomial logistic reveals that AIM has positive impact on household income of women borrowers who spent three years in the scheme as compared to new borrowers who have not received treatment.

Academic research paper on topic "The Impact of Microfinance on Poverty Reduction: Empirical Evidence from Malaysian Perspective"

Available online at www.sciencedirect.com

ScienceDirect

Procedía - Social and Behavioral Sciences 195 (2015) 721 - 728

World Conference on Technology, Innovation and Entrepreneurship

The Impact of Microfinance on Poverty Reduction: Empirical Evidence from Malaysian Perspective

Sayed Samera*, Izaidin Majida, Syaiful Rizala, M. R. Muhamada, Sarah-Halima, Nlizwa

Rashida

aFaculty of Technology Management & Technopreneurship, Universiti Teknikal Malaysia Melaka, Malaysia

Abstract

Microfinance became a buzzword in the credit markets as an effective tool for poverty reduction and socioeconomic development. Yet, the impact still questioned and varies from one country to others and from urban to rural. The aim of this paper was to examine the role of Malaysian microfinance Amanah Ikhtiar Malaysia (AIM) on household income. A cross-sectional survey interviewed 780 from old and new clients in Selangor and Melaka states in Malaysia. The stratified random method was used to collect the data from urban and rural districts. The finding of multinomial logistic reveals that AIM has positive impact on household income of women borrowers who spent three years in the scheme as compared to new borrowers who have not received treatment.

© 2015TheAuthors.PublishedbyElsevierLtd.This is an open access article under the CC BY-NC-ND license

(http://creativecommons.Org/licenses/by-nc-nd/4.0/).

Peer-review under responsibility of Istanbul Univeristy.

Keywords: Malaysian, Microfinance, Poverty Reduction

* Corresponding author. Tel.: 013 6266477. E-mail address: samshami22@yahoo. com

1877-0428 © 2015 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license

(http://creativecommons.org/licenses/by-nc-nd/4.0/).

Peer-review under responsibility of Istanbul Univeristy.

doi: 10.1016/j.sbspro.2015.06.343

1. Introduction

Microfinance is widely known as a provision of financial services such as credit, saving, deposit, insurance and repayment services to those who are deprived of accessing into conventional financial services because they are poor and they cannot offer collateral (Ledgerwood 1998; Littlefield, Murduch, and Hashemi 2003; Robinson. 2001). The underlying logic is that through extending financial services, low income people will have the ability to participate in the economic market and exploit entrepreneurial opportunities through start-up new businesses extending current business or introducing new activities.

Subsequently, they will be able to combat the poverty and satisfy their households' needs independently and consistently. In contrast, microfinance institutions will have the ability to develop their capacity through imposing a small ratio of interest on the given loans. A large size of microfinance studies from various disciplines suggest that microfinance has significant impact on poverty reduction as well as household wellbeing at deferent levels such as asset acquisition, household nutrition, health, food security, children education, women's empowerment, and social cohesion (Armendáriz de Aghion and Morduch 2000; Armendáriz and Morduch 2005, 2010; Hashemi, Schuler, and Riley 1996; Littlefield et al. 2003; Roodman and Morduch 2009). However, recently the impact of microfinance has been questioned and many studies argue that the impact of microfinance is divergent between positive, no impact and even negative impact (Angelucci, Karlan, and Zinman 2013; Ganlea, Afriyie, and Segbefia 2015; Rooyen, Stewart, and de Wet 2012). The literature acclaims that the impact of microfinance works differently from one context to others and the impact is dependent on the population density, attitudes to debt, group-cohesion, enterprise development, financial literacy, financial service providers and other (Armendáriz, Aghion, and Morduch 2005). The Malaysian microfinance plays an important role in socioeconomic development of poor and low income people especially women (Al-mamun et al. 2014; Al-Shami et al. 2013). Despite, the significant impact of Malaysian microfinance which was highlighted by several studies, the majority of these studies were conducted in rural areas and used simple statistic tools such as T test, Mann-Whitney which is exposure to several weaknesses such as bias selection and the lack of controlling the effect of demographic characteristics (Hashemi et al. 1996). The aim of this paper is to evaluate the effect of Malaysian microfinance Amanah Iktiar Malaysia (AIM) on women livelihood in Urban Selangor and Melaka states. The main reasons of selecting these two provinces is due to the fact that Selangor and Melaka have the fastest growth urbanization ratio and over than 75% of population are living in urban. Second, over than 70% of AIM clients in Selangor and Melaka are living in urban areas.

1.1. Malaysian Microfinance

Amanah Ikhtiar Malaysia (AIM) was the first MFI in Malaysia which was established in 1987 in Selangor state as non-government organization with social mission of targeting poor and low income women. The Grameen bank model of group-lending was replicated by (AIM) with adjusting the characteristics of microcredit services to cope with Malaysian context. The aim of (AIM) is to extend loans and other financial services to women who are deprived of formal financial services because of the lack of collateral. The reason of targeting women is owed to the significant role that women play in their household enhancement. AIM covers approximately 82% of Malaysian poor and low income households (Al-Shami et al. 2013). The (AIM) loan is free interest based on Islamic principles, except 10% as operational and management fees with 2% as a compulsory saving. According to AIM annually report 2013, about 346,245 women clients throughout the country were benefited from AIM as shown in Figure 1.

60,000 50,000 40,000

The cBouts number of (AIM) throughout thecountiy

rYiTTrrn . 11

Jfc .-Jk- ¿fr J* ¿S> J? <J-

X ^ <*■ y J ^ y y y y y

i Number oi Aitvl c&erits 2013 Number of clients -Number or aim events 2013 Number oiclients

Fig. 1. The number of AIM clients 2013. Source: AIM annually report 2013

2. Literature Review and Hypotheses

Microfinance has been widely recognized as a crucial tool for poverty alleviation and socioeconomic wellbeing. It helps them to diversify the household income, smoothen the household expenditure and enable them to cope with economic shocks and fluctuations (Ledgerwood, 1998; Littlefield, Murduch, & Hashemi, 2003; Robinson., 2001). Microfinance is shown to have a positive effect on poverty reduction at macro level (Imai et al. 2012),Microfinance play an important role on poverty reduction and socioeconomic development in Sub-Sahara Africa countries (Rooyen et al. 2012). The Malaysian microfinance has positive effect of on economic vulnerability among hard-core poor households (Al-mamun et al. 2014). Study by (Ghaliba, Malki, and Imai 2014), emphases that Pakistani microfinance has positive impact on poverty alleviation which was manifested in household income and expenditure especially in clothing and health. According to the finding of panel data, Bangladeshi microfinance was found to have positive effect on poverty reduction and household expenditure especially food and non-food (Khandker 2005). The Uganda microfinance has a positive impact on the rural clients "households" income diversification and assets accumulation (Morris and Barnes 2005). Based on retrospective data gathered from Guatemala, India, and Ghana microfinance instructions, the impact of microfinance was shown to be positive on borrowers' households as well as businesses (Mcintosh, Villaran, and Wydick 2008). Mmicrofinance has positive impact on the borrowers' income especially in urban areas in India (Imai, Arun, and Annim 2010). The Zimbabwe microfinance has positive impact on poverty reduction and the average income of microfinance clients was more than the average income of new clients or non-clients (Morduch and Graduate 2002).

Therefore, this study hypothesis that: AIM loan has positive effect of household income of women borrowers.

3. Microfinance Methodology

Basically, the scientific approach of impact assessment methodologies such as randomized control trait and quasi-experimental are important to assess the impact of microfinance intervention. Yet, it is very difficult to employ these type of methods and also costly (Karlan 2001; Swain and Varghese 2009). To find a middle method between rigor, expensive methods and reliable method, the AIMS project suggests a middle method where new clients can be used as a control group. The use of new clients as control group is more efficient for saving time and cost and researcher does not need to go over longitudinal survey (Karlan 2001). The new clients were used as control group in many microfinance studies to name (Brannen 2010; Hiatt and Woodworth 2006; Karlan 2007; Kondo et al. 2008; Swain and Varghese 2009). This study used new clients as a control group.

3.1. Sample selection

A survey of 780 women conducted in March 2014. As shown in Table 1, four separate samples were drawn, using a random multistage cluster design to include fourteen districts from two provinces of Malaysia namely Selangor and Melaka. The four groups consisted of old members from urban Selangor and Melaka (those who

joined AIM scheme in 2010 and continued until 2014 = 360), new clients from urban (those who joined AIM scheme in 2014 and have not yet used their loans = 140), old members from rural Selangor and Melaka (those who joined AIM scheme in 2010 and continued until 2014 = 180), and new clients from rural (those who joined AIM scheme in 2014 and have not yet used their loans = 100). The conducted survey includes questions related to women household expenditure.

Table 1. The distribution of collected data

Selangor Melaka

Sample Old clients New clients Old clients New clients Total

Rural 80 40 100 60 280

Total 320 140 220 100 780

3.2. Operational definitions of survey variables

The poverty line income was widely recommended to be used in measuring the impact of microfinance on household level to name (Johnson and Rogaly 1997; Navajas et al. 2000; Panjaitan-Drioadisuryo and Cloud 1999). In this research, dependent variable is household income which was adopted from Malaysian poverty line (Lehar, Anas, and Choo 2014) in three categories namely extreme poverty (households with monthly income equals or below RM 440, poor (households with monthly income equals or below RM 750 and finally low income (household with monthly income equals or below than RM 2000. The extreme poverty group was selected as reference category.

3.3. Research Analysis

3.3.1. Descriptive Analysis and Problem of Bias Selection

Table 2, illustrates simple comparison in the demographic characteristics between in urban and rural. First, the urban clients were divided into two groups' namely 360 of old clients who joined AIM scheme in 2010 and still active and 180 of new clients who joined AIM in the early of 2014 and have not used their loans yet. Second, rural clients were divided into two groups namely 180 of old rural clients who joined AIM scheme in 2010 and still active and 100 of new rural clients who joined AIM scheme in 2014 and have not used their loans. The analysis process contains four control variables related to women demographic and socioeconomic characteristics. These are respondents' age (coded in single year), number of children (coded number), number of dependents in household (coded in numbers), have saving account (coded dummy in which those who have saving account 1, and these who don't have 0), and marital status (coded binary in which married women coded 1 and others 0), the level of education coded ordinal in which (1 refers to secondary and above, 2 middle school, and 3 primary school). This comparison allows for initial estimations of program impact.

Table 2. Descriptive Analysis

Variables Old clients Urban New clients Urban Old clients Rural New Clients Rural

N 360 140 180 100

Mean of Age 38.55 37.29 38.6 36.9

Household size 5.05 4.86 1.91 1.96

Saving account 243 (67.5%) 74 (52.9%) 73 (40.6%) 23 (23%)

Access to loan before joining AIM 156 (43.3%) 74 (52.9%) 75 (41.7%) 52(52%)

Access to Business training 226 (62.8%) 73 (52.1%) 96 (53.3%) 44 (44%)

Secondary school and above 141 (39.2%) 65 (46.4%) 68 (37.8%) 41 (41%)

Middle school 184 (51.1%) 65 (46.4%) 88 (48.9%) 51 (51%)

Primary school 35 (9.7%) 10 (7.1%) 24 (13.3%) 8 (8%)

< RM 440 41 (11.4%) 40 (28.6%) 39 (21.7%) 54 (54%)

> RM 750 267 (74.2%) 95 (67.9%) 120 (66.7%) 40 (40%)

> RM 2000 52 (14.4%) 5(3.6%) 21 (11.7%) 6 (6%)

Table (2) demonstrates some selection bias, the differences between the four groups is not large. Members in urban and rural are one to two years older in average than new clients and there are no significant differences in the number of children and household dependents. The percentage of those who have secondary school and above is slightly higher among new clients as compared to old clients. The percentage of those who accessed to loan services before joining AIM scheme is slightly higher among new borrowers in both urban and rural by approximately 9% and 10% respectively. The percentage of those who accessed to business training is relatedly higher in old clients either in urban or rural by approximately 10%. Finally, the percentage of those who have saving account is higher in the old clients either in urban or rural by 14% and 18% respectively.

3.3.2. Household Income in Urban

The distribution reveals that the probability of the model chi-square 60.17 is 0.000 < 0.05. The null hypothesis that states there is no difference between the model without independent variables and the model with independent variables was rejected. The Deviance statistic here demonstrates that the model is a good fit of the data (p = .524, which is significantly higher than .05). The Nagelkerke R2 value of .145 indicates the model is useful in predicting household income. Finally, the classification table for analysis of the effect of microfinance on household income as shown in Table 3 suggests a 73% correct prediction, which is well above the criteria for chance accuracy of 57.4%. This indicates that the criteria for classification accuracy are satisfied for the analysis.

As shown in Table3, model one show the relationship between access to AIM loan and the household income of low income women (those whose household income equals or less RM 750) at urban areas. The odd ratio (Exp (B) indicates that likelihood of the household income of treatment group (old clients) increase by 1.5 as compared to new clients. Model one also shows other control variables that have positive significant effects on household income. For example, the odd ratio of 1.3 indicates that increase the size of household by one unit leads to increase household income by 0.3. The odd ratio of 2.1 indicates that access to business training leads to increase household income by 1.1. However, the odd ratio of 0.489, indicates that access to saving account leads to decrease household income by 0.51.This indicates that women who have saving account used their surplus in saving account rather than contributing to household income. In addition, model two shows the relationship between access to AIM loan and the household income of women borrowers whose household income equals or less than RM 2,000. The odd ratio (Exp (B) of 2.3 indicates that likelihood of the household income of treatment group (old clients) increase by 2.5 as compared to new clients. Model one also shows other control variables that have positive significant effects on household income. For example, the odd ratio of 1.1 indicates that increase the age leads to increase household income by 0.1. The odd ratio of 1.85 indicates that increase the size of household by one unit leads to increase household income by 0.85. The odd ratio of 2.7 indicates that access to business training leads to increase household income by 1.7%.

Table 3. The Effect of Exposure to AIM Loan on Urban and Rural Household Income

Urban Household Income Rural Household Income

Variables Model 1 Model 2 Model 1 Model 2

Sig. Exp(B) Sig. Exp(B) Sig. Exp(B) Sig. Exp(B)

Treatment group 0.002 2.508 0.04 2.307 0 3.32 0.008 4.2

Age 0.161 1.031 0 1.103 0.718 1.007 0.419 1.02

Household Members 0.036 1.299 0.001 1.859 0.014 1.386 0.225 1.31

Secondary school 0.244 1.724 0.176 2.592 0.955 0.974 0.845 1.16

Middle school 0.27 1.661 0.242 2.251 0.792 1.127 0.889 1.11

Primary school

Have saving account 0.02 0.489 0.039 0.432 0.844 0.944 0.443 1.45

Access to loan before joining AIM 0.843 1.058 0.419 0.734 0.119 0.643 0.624 0.79

business training 0.01 2.092 0.01 2.733 0.418 0.778 0.873 0.92

Intercept 0.108 0 0.06 0.005

Chi square 50.17*** 34.6***

Pearson 0.524 0.56

Deviance 1 0.945

Cox &Snell R2 0.113 0.116

NagelKerke R2 0.145 0.138

Classification 73% 61.4%

3.3.3. Household income in Rural

The distribution reveals that the probability of the model chi-square 34.61 is 0.000 < 0.05. The null hypothesis that states there is no difference between the model without independent variables and the model with independent variables was rejected. The Deviance statistic here demonstrates that the model is a good fit of the data (p = .945, which is significantly higher than .05). The Nagelkerke R2 value of .138 indicates the model is useful in predicting household income. Finally, the classification table for analysis of the effect of microfinance on household income as shown in Table 3 suggests a 61% correct prediction, which is well above the criteria for chance accuracy of 43.47%. This indicates that the criteria for classification accuracy are satisfied for the analysis. Table 3 shows model one which illustrates the relationship between access to AIM loan and the household income of low income women (those whose household income equals or less than RM 750) at rural areas. The odd ratio (Exp (B) of 3.3 indicates that likelihood of the household income of treatment group (old clients) increase by 2.3 as compared to new clients. Model one also shows other control variables that have positive significant effects on household income. For example, the odd ratio of 1.38 indicates that increase the size of household by one unit leads to increase household income by 0.38. Table 5 shows model two which illustrates the relationship between access to AIM loan and the household income of women borrowers whose household income equals or below RM 2,000 at rural areas. The odd ratio (Exp (B) of 4.27 indicates that likelihood of the household income of treatment group (old clients) increase by 3.27 as compared to new clients.

4. Discussion

Table 3, demonstrates the result of multinomial logistic regression on the effect of access to AIM microcredit on women household income in urban and rural Selangor and Melaka provinces in Malaysia. The finding of Table 3, indicates that access to AIM microcredit has positive impact on old clients' household income as compared to new clients. The literature suggests that microfinance enables women to participate in economic market through forming and extending their micro and small businesses and generate independent income that allows them to contribute to their household income. The literature also points that access to microfinance enables poor and low income

borrowers especially women to diversify their livelihood and alleviate their venerability. For example, microfinance has positive effect on poverty reduction and household income (Al-mamun et al. 2014), household expenditure (Ghaliba et al. 2014), food and non-food expenditure (Khandker 2005) or income diversification and assets accumulation (Morris and Barnes 2005). However, recent studies such as (Angelucci et al. 2013; Ganlea et al. 2015; Rooyen et al. 2012) found that microfinance is not a bullet magic in poverty reduction and it may has negative impact. while (Armendariz et al. 2005), argues that microfinance works differently from one context to others and from rural to urban the population density, attitudes to debt, group-cohesion, enterprise development, financial literacy, financial service providers and other. In line with this study, the Malaysian microfinance has positive impact on poverty reduction and women household income especially in rural areas. The result of this study highlighted the important of control variables that have positive impact on women household income. For instance, access to business training has positive impact on women household income. This indicates that women with knowledge about business are more able to make profit and enhance their business revenue. The finding of this study is in consensus with study by (Karlan and Valdivia 2011) in the importance of extending nonfinancial services such as business development and entrepreneurship training to women clients before providing them loans.

5. Implication of the Research and Conclusion

The findings of this study have several main implications for the academic, microfinance institutions and the policymakers. For the academic, this study added new evidence on the impact of microfinance on socioeconomic development of low income household especially women who cannot access to financial services due to their poverty. It helps them to diversify their household income and alleviate their poverty. In a nutshell, this study provides an insight about the role of microfinance on women empowerment in the urban and rural developing country from the perspective of Malaysian context. In a similar vein, this study suggests that microfinance has the ability to contribute significantly to the achievement of new economic policy (NEP) and new economic model (NEM) that guide the achievement of Malaysian 2020 vision to become fully developed nation. It does so, through enhancing the socioeconomic wellbeing of poor and low income people especially women. It also plays a central role in creating jobs for women especially those with low education. Therefore microfinance opens an opportunity for women borrowers to play significant role in economic development. Despite of the significant impact of (AIM) on the household income, a large number of old clients have not graduated from the scheme and become financially self-sufficient. This issue should be addressed by the policy-makers of Malaysian government as well as the (AIM) in how to transform the strategy of socioeconomic wellbeing from relying on credit as a source of income to build their capacity. Therefore, future research should pay attention on how to improve the sustainability and growth of micro and small businesses that financed by microfinance.

References

Al-mamun, Abdullah, Mohammad, Nurul, Huda, Mazumder, & Malarvizhi, C. A. (2014). Measuring the effect of amanah ikhtiar Malaysia's

microcredit programme on economic vulnerability among hardcore poor households. Progress in Development Studies, 1, 49-59. Al-Shami, Sayed, Samer, Ali, Izaidin Bin Adbul Majid, Nurulizwa Abdul Rashid, & Mohd Syaiful Rizal Bin Abdul Hamid. (2013). Conceptual framework: The role of microfinance on the wellbeing of poor people cases studies from Malaysia and Yemen. Asian Social Science 10(1), 230-42.

Angelucci, Manuela, Dean S., Karlan, & Jonathan, Zinman. (2013). Win some lose some? Evidence from a randomized microcredit program

placement experiment by compartamos banco. Institute for the Study of Labor (IZA), 7439, 71. Armendariz, Beatriz, Aghion, & Jonathan, Morduch. (2005). The economics of microfinance, Economic Record, 82, 491-92. Armendariz, Beatriz, & Jonathan, Morduch. (2010). The economics of microfi nance second edition Beatriz Armendariz & Jonathan Morduch.

second. United States of America.: Library of Congress Cataloging-in-Publication Data. Armendariz de Aghion, & Morduch, J. (2000). Microfinance beyond group lending. Economics of Transition 8(2), 401-20. Armendariz, & Morduch, J. (2005). The economics of microfinance. MIT Press: Cambridge, MA.

Brannen, Conner. (2010). An impact study of the village savings and loan association ( VSLA ) program in zanzibar , Tanzania. Wesleyan University.

Duvendack, Maren, Richard Palmer-Jones, & Lee, Hooper. (2011). Systematic review what is the evidence of the impact of microfinance on the well-being of poor people ? By.

Ganlea, John, Kuumuori, Kwadwo Afriyie, & Alexander Yao Segbefia. (2015). Microcredit: Empowerment and disempowerment of rural

women in Ghana" World Development, 335-45. Ghaliba, Asad K., Issam, Malki, & Katsushi, S. Imai. (2014). Microfinance and household poverty reduction: Empirical evidence from rural

Pakistan. Oxford Development Studies, 84-104. Hashemi, S. M., S. R. Schuler, & A. Riley. (1996). Rural credit programs and women's empowerment in Bangladesh. World Development 24(4), 635-53.

Hiatt, Shon R., & Warner P. Woodworth. (2006). Alleviating poverty through microfinance: Village banking outcomes in Central America. The

Social Science Journal, 43(3), 471-77. Imai, Katsushi S., Thankom, Arun, & Samuel, Kobina Annim. (2010). Microfinance and household poverty reduction: New evidence from India.

World Development, 38, 1760-74.

Imai, Katsushi S., Raghav, Gaiha, Ganesh, Thapa, & Samuel, Kobina Annim. (2012). Microfinance and poverty-a macro perspective. World

Development, 40(8), 1675-89. Johnson, & Rogaly. (1997). Microfinance and poverty reduction. UK and Ireland: UK: Oxfam.

Kabeer, Naila. (1999). Resources, Agency, Achievements: Re-ections on the measurement of women' empowerment. Blackwell Publishing Limited, 30(May), 435-64.

Karlan. (2001). Microfinance impact assessments: The perils of using new members as a control group. Journal of Microfinance, 3, 75-85. Karlan, Dean. (2007). Cross sectional impact analysis: Bias from dropouts. Microfinance Journal (December).

Karlan, Dean, & Martin Valdivia. (2011). Teaching entrepreneurship: Impact of business training on microfinance clients and institutions. Review

of Economics and Statistics, 93, 510-27. Khandker, Shahidur. (2005). Micro-finance and poverty: Evidence using panel data from Bangladesh.

Kondo, Toshio, Aniceto, Orbeta Jr., Clarence ,Dingcong, & Christine, Infantado. (2008). Impact of microfinance on rural households in the

Philippines. IDS Bulletin, 39(1), 51-70. Ledgerwood, Joanna. (1998). Microfinance handbook: An Institutional and Financial Perspective. Washing: World Bank. Lehar, Habibah, Yaacob Anas, & Tey Hwei Choo. (2014). Malaysian Economy. Oxford University Press.

Littlefield, Elizabeth, Jonathan Murduch, & Syed Hashemi. (2003). Is microfinance an effective strategy to reach the millennium development goals ?

Mcintosh, Craig, Gonzalo Villaran, & Bruce Wydick. (2008). "Microfinance and home improvement: Using retrospective panel data to measure

program effects on fundamental events. Morduch, Jonathan, & Robert F. Wagner Graduate. (2002). Analysis of the effects of microfinance on poverty reduction. Morris, Gayle, & Carolyn Barnes. (2005). An assessment of the impact of microfinance. Journal ofMicrofinance, 7(1), 39-54. Navajas, Sergio, Mark, Schreiner, Richard L., Meyer, Claudio, Gonzalez-vega, & Jorge, Rodriguez-meza. (2000). Microcredit and the poorest of

the poor: Theory and evidence from Bolivia. World Development, 28(2), 333-46. Panjaitan-Drioadisuryo, Rosintan D. M., & Kathleen Cloud. (1999). Gender, self-employment and microcredit programs an Indonesian case

study. The Quarterly Review of Economics and Finance, 39, 769-79. Robinson., Marguerite. (2001). The microfinance revolution sustainable finance for the poor. Washington, US: World Bank. Roodman, David, & Jonathan, Morduch. (2009). Mpact of microcredit on the poor in Bangladesh: Revisiting the Evidence. Washington. Rooyen, C., R. Stewart, & T. de Wet. (2012). The impact of microfinance in Sub-Saharan Africa: A systematic review of the evidence. World Development, 40, 2249-62.

Swain, Ranjula Bali, & Adel, Varghese. (2009). Does self help group participation lead to asset creation? World Development, 37, 1674-82.