IDEAS home Printed from https://ideas.repec.org/a/eee/wdevel/v41y2013icp168-182.html
   My bibliography  Save this article

How Effective is a Big Push to the Small? Evidence from a Quasi-Experiment

Author

Listed:
  • Mallick, Debdulal

Abstract

This paper investigates whether a big push to the extreme poor in terms of a one-off large grant enables them to participate in the microfinance program. The analysis uses data from a quasi-experiment on BRAC’s ultra poor program in Bangladesh. The results for the baseline and repeat survey data for the treatment and comparison groups show that such a big push does make a significant impact on graduation to the microfinance program. The results are robust to correction for self-selection bias. Social capital and awareness also play important role in their decision on NGO membership and borrowing.

Suggested Citation

  • Mallick, Debdulal, 2013. "How Effective is a Big Push to the Small? Evidence from a Quasi-Experiment," World Development, Elsevier, vol. 41(C), pages 168-182.
  • Handle: RePEc:eee:wdevel:v:41:y:2013:i:c:p:168-182
    DOI: 10.1016/j.worlddev.2012.05.021
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305750X1200143X
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.worlddev.2012.05.021?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. repec:bla:obuest:v:63:y:2001:i:1:p:115-43 is not listed on IDEAS
    2. Daniel L. Millimet & Rusty Tchernis, 2013. "Estimation Of Treatment Effects Without An Exclusion Restriction: With An Application To The Analysis Of The School Breakfast Program," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 28(6), pages 982-1017, September.
    3. Blanchflower, David G., 2000. "Self-employment in OECD countries," Labour Economics, Elsevier, vol. 7(5), pages 471-505, September.
    4. Sascha O. Becker & Marco Caliendo, 2007. "Sensitivity analysis for average treatment effects," Stata Journal, StataCorp LP, vol. 7(1), pages 71-83, February.
    5. repec:pri:rpdevs:gamespaper.pdf is not listed on IDEAS
    6. Dowla, Asif, 2006. "In credit we trust: Building social capital by Grameen Bank in Bangladesh," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 35(1), pages 102-122, February.
    7. M. Shahe Emran & Stephen C. Smith & Virginia Robano, 2009. "Assessing the Frontiers of Ultra-Poverty Reduction: Evidence from CFPR/TUP, an Innovative Program in Bangladesh," Working Papers 2009-06, The George Washington University, Institute for International Economic Policy.
    8. Matin, Imran & Hulme, David, 2003. "Programs for the Poorest: Learning from the IGVGD Program in Bangladesh," World Development, Elsevier, vol. 31(3), pages 647-665, March.
    9. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2004. "The Role of Social Capital in Financial Development," American Economic Review, American Economic Association, vol. 94(3), pages 526-556, June.
    10. Nahid Sultana & Naznin Islam, 2009. "NGOs in Bangladesh," Indian Journal of Gender Studies, Centre for Women's Development Studies, vol. 16(1), pages 77-98, February.
    11. DeanS. Karlan, 2007. "Social connections and group banking," Economic Journal, Royal Economic Society, vol. 117(517), pages 52-84, February.
    12. Edward L. Glaeser & David Laibson & Bruce Sacerdote, 2002. "An Economic Approach to Social Capital," Economic Journal, Royal Economic Society, vol. 112(483), pages 437-458, November.
    13. Narayan, Deepa & Pritchett, Lant, 1999. "Cents and Sociability: Household Income and Social Capital in Rural Tanzania," Economic Development and Cultural Change, University of Chicago Press, vol. 47(4), pages 871-897, July.
    14. James Heckman & Salvador Navarro-Lozano, 2004. "Using Matching, Instrumental Variables, and Control Functions to Estimate Economic Choice Models," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 30-57, February.
    15. Arild Aakvik, 2001. "Bounding a Matching Estimator: The Case of a Norwegian Training Program," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 63(1), pages 115-143, February.
    16. Dean Karlan & Nathanael Goldberg, 2011. "Microfinance Evaluation Strategies: Notes on Methodology and Findings," World Scientific Book Chapters, in: Beatriz Armendáriz & Marc Labie (ed.), The Handbook Of Microfinance, chapter 2, pages 17-58, World Scientific Publishing Co. Pte. Ltd..
    17. Dean S. Karlan, 2005. "Using Experimental Economics to Measure Social Capital and Predict Financial Decisions," American Economic Review, American Economic Association, vol. 95(5), pages 1688-1699, December.
    18. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    19. Ai, Chunrong & Norton, Edward C., 2003. "Interaction terms in logit and probit models," Economics Letters, Elsevier, vol. 80(1), pages 123-129, July.
    20. Hashemi, Syed M. & Schuler, Sidney Ruth & Riley, Ann P., 1996. "Rural credit programs and women's empowerment in Bangladesh," World Development, Elsevier, vol. 24(4), pages 635-653, April.
    21. Marcel Fafchamps, 2006. "Development and social capital," Journal of Development Studies, Taylor & Francis Journals, vol. 42(7), pages 1180-1198.
    22. Joel Sobel, 2002. "Can We Trust Social Capital?," Journal of Economic Literature, American Economic Association, vol. 40(1), pages 139-154, March.
    23. ., 2006. "Social Capital," Chapters, in: David Alexander Clark (ed.), The Elgar Companion to Development Studies, chapter 112, Edward Elgar Publishing.
    24. Patrick Webb & Jennifer Coates & Robert Houser, 2002. "Does Microcredit Meet the Needs of all Poor Women? Constraints to Participation Among Desitute Women in Bangladesh," Working Papers in Food Policy and Nutrition 03, Friedman School of Nutrition Science and Policy.
    25. Chaudhuri, Kausik & Schneider, Friedrich & Chattopadhyay, Sumana, 2006. "The size and development of the shadow economy: An empirical investigation from states of India," Journal of Development Economics, Elsevier, vol. 80(2), pages 428-443, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rejaul K. Bakshi & Debdulal Mallick & Mehmet A. Ulubaşoğlu, 2019. "Social capital as a coping mechanism for seasonal deprivation: the case of the Monga in Bangladesh," Empirical Economics, Springer, vol. 57(1), pages 239-262, July.
    2. Edmonds, Eric & Theoharides, Caroline, 2020. "The short term impact of a productive asset transfer in families with child labor: Experimental evidence from the Philippines," Journal of Development Economics, Elsevier, vol. 146(C).
    3. João Paulo Coelho Ribeiro & Fábio Duarte & Ana Paula Matias Gama, 2022. "Does microfinance foster the development of its clients? A bibliometric analysis and systematic literature review," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-35, December.
    4. Tunvir Ahamed Shohel & Sara Niner & Samanthi J. Gunawardana, 2023. "‘Even Though I Get a Loan, My Husband Controls It’: Rhetoric Versus Reality of Empowering Bangladeshi Women Through Microfinance Programs," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 35(4), pages 794-819, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mallick, Debdulal, 2009. "How effective is a Big Push to the Small? Evidence from a Quasi-random Experiment," MPRA Paper 22824, University Library of Munich, Germany.
    2. Bauernschuster, Stefan & Falck, Oliver & Heblich, Stephan, 2010. "Social capital access and entrepreneurship," Journal of Economic Behavior & Organization, Elsevier, vol. 76(3), pages 821-833, December.
    3. Feigenberg, Benjamin & Field, Erica M. & Pande, Rohini, 2010. "Building Social Capital through Microfinance," Working Paper Series rwp10-019, Harvard University, John F. Kennedy School of Government.
    4. Jennings, Colin & Sanchez-Pages, Santiago, 2017. "Social capital, conflict and welfare," Journal of Development Economics, Elsevier, vol. 124(C), pages 157-167.
    5. Yamamura, Eiji, 2008. "The role of social capital in homogeneous society: Review of recent researches in Japan," MPRA Paper 11385, University Library of Munich, Germany.
    6. Cuong Le Van & Anh Ngoc Nguyen & Ngoc‐Minh Nguyen & Michel Simioni, 2018. "Growth strategy with social capital, human capital and physical capital—Theory and evidence: The case of Vietnam," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 20(5), pages 768-787, October.
    7. Javakhadze, David & Ferris, Stephen P. & French, Dan W., 2016. "Social capital, investments, and external financing," Journal of Corporate Finance, Elsevier, vol. 37(C), pages 38-55.
    8. Ann Owen & Julio Videras, 2009. "Reconsidering social capital: a latent class approach," Empirical Economics, Springer, vol. 37(3), pages 555-582, December.
    9. Bauernschuster, Stefan & Falck, Oliver & Woessmann, Ludger, 2014. "Surfing alone? The internet and social capital: Evidence from an unforeseeable technological mistake," Journal of Public Economics, Elsevier, vol. 117(C), pages 73-89.
    10. Araujo, Luis & Minetti, Raoul, 2011. "Knowledge sharing and the dynamics of social capital," European Economic Review, Elsevier, vol. 55(8), pages 1109-1119.
    11. Joel M. Guttman, 2010. "Reputation, Trust and the Logic of Group Lending," NFI Working Papers 2010-WP-02, Indiana State University, Scott College of Business, Networks Financial Institute.
    12. Philipp Marek & Benjamin Damm & Tong-Yaa Su, 2015. "Beyond the Employment Agency: The Effect of Social Capital on the Duration of Unemployment," SOEPpapers on Multidisciplinary Panel Data Research 812, DIW Berlin, The German Socio-Economic Panel (SOEP).
    13. Shoji, Masahiro & Aoyagi, Keitaro & Kasahara, Ryuji & Sawada, Yasuyuki & Ueyama, Mika, 2012. "Social Capital Formation and Credit Access: Evidence from Sri Lanka," World Development, Elsevier, vol. 40(12), pages 2522-2536.
    14. Giacomo De Luca & Marijke Verpoorten, 2011. "From Vice to Virtue? Civil War and Social Capital in Uganda," HiCN Working Papers 111, Households in Conflict Network.
    15. Kim, Byung-Yeon & Kang, Youngho, 2014. "Social capital and entrepreneurial activity: A pseudo-panel approach," Journal of Economic Behavior & Organization, Elsevier, vol. 97(C), pages 47-60.
    16. repec:lic:licosd:29811 is not listed on IDEAS
    17. Roberta Dessì & Salvatore Piccolo, 2008. "Two is Company, N is a Crowd? Merchant Guilds and Social Capital," CSEF Working Papers 202, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy, revised 12 Jul 2009.
    18. Takeshi Aida, 2019. "Social capital as an instrument for common pool resource management: a case study of irrigation management in Sri Lanka," Oxford Economic Papers, Oxford University Press, vol. 71(4), pages 952-978.
    19. Khandker, Shahidur R. & Khalily, M. A. Baqui & Samad, Hussain A., 2010. "Seasonal and extreme poverty in Bangladesh : evaluating an ultra-poor microfinance project," Policy Research Working Paper Series 5331, The World Bank.
    20. Sabatini, Fabio, 2006. "The Empirics of Social Capital and Economic Development: A Critical Perspective," Knowledge, Technology, Human Capital Working Papers 12097, Fondazione Eni Enrico Mattei (FEEM).
    21. Gutiérrez-Nieto, Begoña & Serrano-Cinca, Carlos, 2019. "20 years of research in microfinance: An information management approach," International Journal of Information Management, Elsevier, vol. 47(C), pages 183-197.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:wdevel:v:41:y:2013:i:c:p:168-182. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/worlddev .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.