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Impact of integrated programs for monthly households consumption expenditure: empirical evidence from Northern Ethiopia

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  • Deresse, Fekadu Nigussie
  • Calfat, Germán

Abstract

The “minimalist” approach that once dominated microfinance outreach in the past is now a fading memory. A growing number of studies are suggesting a more “integrative” approach to support the marginalized and ultra-poor households. This study highlights the impact of the integrated programs-Village Saving and Loan Association (VSLA) and Productive Safety Net Programs (PSNP)-in Sekota district, Northern Ethiopia on consumption expenditure of households. Endogenous Switching Regression model is fitted to minimize threats of self-selection bias, unobserved characteristics and heterogeneity effect. The result reveals that self-selected participant in the integrated program has a significant and positive impact on monthly consumption expenditure compared with the random participants and non-participants.

Suggested Citation

  • Deresse, Fekadu Nigussie & Calfat, Germán, 2014. "Impact of integrated programs for monthly households consumption expenditure: empirical evidence from Northern Ethiopia," IOB Working Papers 2014.10, Universiteit Antwerpen, Institute of Development Policy (IOB).
    • Handle: RePEc:iob:wpaper:201410
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    Keywords

    Endogenous switching regression; Productive Safety Net Programme; Self-selection bias; Village Saving and Loan Association; Ethiopia;
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