Abstract

http://ssrn.com/abstract=1715442
 
 

References (52)



 
 

Citations (2)



 


 



Does Microfinance Cause or Reduce Suicides? Policy Recommendations for Reducing Borrower Stress


Arvind Ashta


Burgundy School of Business - CEREN

Saleh Khan


Burgundy School of Business

Philipp E. Otto


European University Viadrina

March 3, 2011


Abstract:     
At a time when suicides by microfinance borrowers in Andhra Pradesh are extensively discussed, this paper makes an initial tentative exploration into the impact of microfinance on suicides. Does MF reduce or increase suicides? Data limitations imply methodological limitations and provisional conclusions. The literature review, starting with Emile Durkheim, of research on suicides brings out the importance of psychological factors, divorce, and unemployment. We investigate time series data on suicides in India and find a just significantly positive correlation with male suicide rates and slightly negative correlations (not significant) with female suicide rates – but no relation between microfinance and total suicides. Cross-sectional data of Indian states indicates a significant positive correlation of total suicides with number of SHGs loans outstanding to Banks, higher than with microfinance loans provided by MFIs, which only shows a weak correlation. Going beyond India, a global country-wise analysis indicates that there is no correlation between microfinance and male or female suicides, yet regression analysis of 31 countries (weakly) indicates that microfinance penetration among the poor is a causal factor for increased suicides. Three related questions are discussed. First, do rapid growth and sustainability aims make MFis forget the human angle? Second, is social pressure necessary to make people repay? Third, if Microfinance increases suicides, is this impact to be differentiated between women and men possibly due to changing roles? Based on these, we tentatively propose policy recommendations.

Number of Pages in PDF File: 30

Keywords: Microfinance, Microcredit, Impact, Suicide, Development, Over-Indebtedness, Group Lending, Health

JEL Classification: O1, O17, O5

working papers series


Download This Paper

Date posted: November 26, 2010 ; Last revised: January 4, 2014

Suggested Citation

Ashta, Arvind and Khan, Saleh and Otto, Philipp E., Does Microfinance Cause or Reduce Suicides? Policy Recommendations for Reducing Borrower Stress (March 3, 2011). Available at SSRN: http://ssrn.com/abstract=1715442 or http://dx.doi.org/10.2139/ssrn.1715442

Contact Information

Arvind Ashta (Contact Author)
Burgundy School of Business - CEREN ( email )
29 rue Sambin
21000 Dijon
France
Saleh Khan
Burgundy School of Business ( email )
29 rue Sambin
Dijon, 21006
France
Philipp E. Otto
European University Viadrina ( email )
Microeconomics Department
Grosse Scharrnstr. 59
D-15230 Frankfurt (Oder)
Germany
Feedback to SSRN


Paper statistics
Abstract Views: 1,713
Downloads: 405
Download Rank: 38,119
References:  52
Citations:  2
Paper comments
No comments have been made on this paper

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo7 in 0.390 seconds