Does microcredit reach the poor and vulnerable? Evidence from northern Bangladesh
AbstractThe Grameen Bank's success in Bangladesh has made microcredit the hot new idea for reducing poverty. This paper uses panel data from two Bangladeshi villages to test if loan recipients are poorer and more vulnerable than non-recipients. Poverty is measured by levels of consumption. Vulnerablitiy is measured as fluctuations in consumption (associated with inefficient risk sharing). We find that loan recipients are poorer than non-recipients in both villages, but are more vulnerable than non-recipients only in the richer and more diversified village. Though microcredit programs target the landless, there is substantial leakage to the landed. Landlessness is not significangly associated with either poverty or vulnerablitiy, but female headship is. Female headed households may be a more appropriate target group for anti-poverty credit programs.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Development Economics.
Volume (Year): 70 (2003)
Issue (Month): 1 (February)
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Web page: http://www.elsevier.com/locate/devec
Other versions of this item:
- Amin, S. & Rai, A.S. & Topa, G., 1999. "Does Microcredit Reach the Poor and Vulnerable? Evidence from Northern Bangldesh," Working Papers 99-06, C.V. Starr Center for Applied Economics, New York University.
- Sajeda Amin & Ashok S. Rai & Giorgio Topa, 1999. "Does Microcredit Reach the Poor and Vulnerable? Evidence from Northern Bangladesh," CID Working Papers 28, Center for International Development at Harvard University.
- Amin, S. & Rai, A.S. & Topa, G., 2000. "Does Microcredit Reach the Poor and Vulnerable? Evidence from Nothern Bangladesh," Papers 28, Chicago - Graduate School of Business.
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
- I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
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