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The impacts of the Microfinance Multiplied approach on seasonal food insecurity

Author

Listed:
  • Berendson, Ricardo Morel
  • Gassmann, Franziska

    (RS: GSBE UM-BIC, RS: GSBE MORSE, Maastricht Graduate School of Governance, RS: GSBE MGSoG, RS: UNU-MERIT Theme 2, RS: UNU-MERIT Theme 6)

  • Martorano, Bruno

    (Maastricht Graduate School of Governance, RS: GSBE MGSoG)

  • Tirivayi, Nyasha J.
  • Kamau, John

Abstract

We study the impact of an innovative program that combines microfinance with farming extension services on food security outcomes in rural South-Western Uganda. For this purpose, we use experimental data and monthly panel data collected over two years to monitor seasonal changes. The results suggest that neither the combined approach of microfinance with farming extension services nor standalone microfinance demonstrated significant effectiveness in reducing food insecurity throughout seasons in the period of analysis. Households in both treatment groups experienced a reduction of dietary diversity mainly during land preparation approximately two years after the start of the interventions. Heterogeneous analysis revealed that households receiving MFM services and having better access to markets experienced occasional improvements in food security. Finally, households with higher food poverty levels in the MFM group experienced some improvements in food security, while those in the Microfinance group encountered sporadic negative outcomes in terms of dietary diversity.

Suggested Citation

  • Berendson, Ricardo Morel & Gassmann, Franziska & Martorano, Bruno & Tirivayi, Nyasha J. & Kamau, John, 2024. "The impacts of the Microfinance Multiplied approach on seasonal food insecurity," MERIT Working Papers 2024-014, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  • Handle: RePEc:unm:unumer:2024014
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    More about this item

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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