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Does Microfinance Make Households More Resilient to Shocks? Evidence From the Cyclone Phailin in India
Author(s) -
Calis Thijmen,
Gangopadhyay Shubhashis,
Ghosh Namrata,
Lensink Robert,
Meesters Aljar
Publication year - 2017
Publication title -
journal of international development
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.533
H-Index - 66
eISSN - 1099-1328
pISSN - 0954-1748
DOI - 10.1002/jid.3301
Subject(s) - microfinance , natural disaster , tropical cyclone , relevance (law) , economics , cyclone (programming language) , development economics , political science , geography , economic growth , meteorology , engineering , law , field programmable gate array , embedded system
This research note examines the relevance of microfinance as a means to cope with natural disasters, using the event of the cyclone Phailin, which struck India in 2013. The results indicate that microfinance helps reduce the negative effects of extreme weather‐related shocks. In light of the somewhat disappointing outcomes suggested by several recent rigorous impact studies, this research paints a more positive picture of the importance of microfinance as an insurance mechanism to deal with weather‐related risks. Copyright © 2017 John Wiley & Sons, Ltd.