This paper tests the hypothesis that microfinance reduces poverty at macro level using crosscountry and panel data, based on the Microfinance Information Exchange (MIX) data on MFIs and the new World Bank poverty estimates. Taking account of the endogeneity associated with loans from MFIs, our econometric analysis shows that a country with higher MFIs' gross loan portfolio tends to have lower levels of FGT class of poverty indices. Contrary to recent micro evidence based on randomised evaluations pointing to no or weak effect on poverty, there is robust confirmation of the poverty reducing role of microfinance. Significantly, microfinance loans are negatively associated with not only the poverty headcount ratio, but also with the poverty gap and squared poverty gap, implying that even the poorest benefit from them. The case for channelling funds from development finance institutions and governments of developing countries into MFIs is thus reinforced. Our assessment has added significance as the tide seems to be turning against microfinance as a means of poverty alleviation.

This study investigates whether mother's empowerment measured by her education attainment relative to father's, domestic violence and autonomy is related to children's nutritional status using the three rounds of NFHS data in India. First, mother's relative education is associated with better nutritional status of children in the short run. Second, the quantile regression results show strong associations between women's empowerment and better nutritional status of children in the long run at the low end of its conditional distribution. Finally, we find the relation between access to health schemes and better nutritional measures of children.