Evaluating the Impact of Training in Self-Help Groups in India

Ranjula Bali Swain and Adel Varghese ()
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Adel Varghese: Department of Economics, Texas A&M University, College Station, Texas, USA.

The European Journal of Development Research, 2014, vol. 26, issue 5, 870-885

Abstract: This article evaluates the impact of widespread training programmes provided by the Self-Help Group (SHG) programme. Indian SHGs are primarily non-governmental organisation (NGO)-formed microfinance groups funded by commercial banks. This article employs evaluation techniques appropriate for current borrowers of a national programme. In addition, the article addresses the double selection issue of membership and training. We correct for membership selection bias using a pipeline method. We then account for training endogeneity with propensity score matching. The results of regression-adjusted matching (which controls for both participation and training selection bias) reveal that specialised training, such as business training, has a greater impact on assets than general training. Furthermore, NGOs should specialise in business training. Sensitivity analyses confirm the robustness of these results.

Date: 2014
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