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Does Microfinance Reduce Poverty in Bangladesh? New Evidence from Household Panel Data

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  • Katsushi S. Imai
  • MD. Shafiul Azam

Abstract

The study examines whether loans from microfinance institutions (MFI) reduce poverty in Bangladesh drawing upon the nationally representative household panel with four rounds from 1997 to 2004. The effects of general microfinance loans and loans for productive purposes on income, food consumption and women's Body Mass Index are estimated. Overall effects of MFI loans on income and food consumption were positive and the purpose of the loan is important in predicting which household welfare indicator is improved. Alternative estimation methods confirm a positive impact of MFI loans on food consumption growth, which supports the poverty reducing effects of microfinance in Bangladesh.

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File URL: http://hdl.handle.net/10.1080/00220388.2012.661853
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Bibliographic Info

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

Volume (Year): 48 (2011)
Issue (Month): 5 (October)
Pages: 633-653

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Handle: RePEc:taf:jdevst:v:48:y:2012:i:5:p:633-653

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Cited by:
  1. Subhasish Dey & Katsushi S. Imai, 2014. "Workfare as "Collateral": The case of the National Rural Employment Guarantee Scheme (NREGS) in India," Discussion Paper Series, Research Institute for Economics & Business Administration, Kobe University DP2014-27, Research Institute for Economics & Business Administration, Kobe University.
  2. Jing You & Samuel Annim, 2013. "The impact of microcredit on child education: quasi-experimental evidence from rural China," Brooks World Poverty Institute Working Paper Series, BWPI, The University of Manchester 18313, BWPI, The University of Manchester.
  3. Dan Brockington & Nicola Banks, 2014. "Exploring the Success of BRAC Tanzania’s Microcredit Programme," Brooks World Poverty Institute Working Paper Series, BWPI, The University of Manchester 20214, BWPI, The University of Manchester.
  4. You, Jing, 2013. "The role of microcredit in older children’s nutrition: Quasi-experimental evidence from rural China," Food Policy, Elsevier, Elsevier, vol. 43(C), pages 167-179.

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