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How Infrastructure and Financial Institutions Affect Rural Income and Poverty: Evidence from Bangladesh

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  • Shahidur Khandker
  • Gayatri Koolwal

Abstract

The mechanisms by which the poor benefit from economic growth remain a topic of debate in development literature. We address this issue in the context of rural Bangladesh, using a pooled dataset of three household panels between 1991-2001. Expansion of irrigation, paved roads, electricity, and access to formal and informal credit have (through different veins) led to higher rural farm and non-farm incomes, accounting for exogenous local agroclimatic endowments that explain a large part of the variation in the growth of infrastructure and credit programmes. However, this has not translated into substantial reductions in poverty for the poorest households.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Journal of Development Studies.

Volume (Year): 46 (2010)
Issue (Month): 6 ()
Pages: 1109-1137

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Handle: RePEc:taf:jdevst:v:46:y:2010:i:6:p:1109-1137

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Cited by:
  1. L. Alan Winters, 2014. "Globalization, Infrastructure, and Inclusive Growth," Trade Working Papers 23974, East Asian Bureau of Economic Research.
  2. Lawrence Sáez, 2013. "Methods in governance research: a review of research approaches," Brooks World Poverty Institute Working Paper Series esid-017-13, BWPI, The University of Manchester.
  3. Paul Chinowsky & Amy Schweikert & Niko Strzepek & Kyle Manahan & Kenneth Strzepek & C. Schlosser, 2013. "Climate change adaptation advantage for African road infrastructure," Climatic Change, Springer, vol. 117(1), pages 345-361, March.

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