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Re-Re-Reply to ìThe Impact of Microcredit on the Poor in Bangladesh: Revisiting the Evidenceî

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  • Mark Pitt

Abstract

ìThe Impact of Microcredit on the Poor in Bangladesh: Revisiting the Evidence,î by David Roodman and Jonathan Morduch (2014) is the most recent of a sequence of papers and postings that seeks to refute the findings of the Pitt and Khandker (1998) article ìThe Impact of Group-Based Credit on Poor Households in Bangladesh: Does the Gender of Participants Matter?î that microcredit for women had significant, favorable effects on poverty reduction. This response paper refutes the claims of Roodman and Morduch that were not addressed in the earlier World Bank working paper of Pitt and Khandker (2012). This response paper, like the Pitt and Khandker (2012) paper and others that preceeded it, shows that many of the Roodman and Morduch claims are based on a flawed econometric understanding and a lack of due diligence in formulating and interpreting statistical models.

Suggested Citation

  • Mark Pitt, 2014. "Re-Re-Reply to ìThe Impact of Microcredit on the Poor in Bangladesh: Revisiting the Evidenceî," Working Papers 2014-2, Brown University, Department of Economics.
    • Handle: RePEc:bro:econwp:2014-2
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    References listed on IDEAS

    as
    1. Mark M. Pitt, 2014. "Response to 'The Impact of Microcredit on the Poor in Bangladesh: Revisiting the Evidence'," Journal of Development Studies, Taylor & Francis Journals, vol. 50(4), pages 605-610, April.
    2. repec:pri:rpdevs:morduch_microfinance_poor is not listed on IDEAS
    3. Pitt, Mark M. & Khandker, Shahidur R., 2012. "Replicating replication : due diligence in Roodman and Morduch's replication of Pitt and Khandker (1998)," Policy Research Working Paper Series 6273, The World Bank.
    4. Mark M. Pitt & Shahidur R. Khandker, 1998. "The Impact of Group-Based Credit Programs on Poor Households in Bangladesh: Does the Gender of Participants Matter?," Journal of Political Economy, University of Chicago Press, vol. 106(5), pages 958-996, October.
    5. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119.
    6. Guido Imbens & Karthik Kalyanaraman, 2012. "Optimal Bandwidth Choice for the Regression Discontinuity Estimator," Review of Economic Studies, Oxford University Press, vol. 79(3), pages 933-959.
    7. Jonathan Morduch, 1998. "Does Microfinance Really Help the Poor? New Evidence from Flagship Programs in Bangladesh," Working Papers 198, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
    8. Bekker, Paul A, 1994. "Alternative Approximations to the Distributions of Instrumental Variable Estimators," Econometrica, Econometric Society, vol. 62(3), pages 657-681, May.
    9. David Roodman & Jonathan Morduch, 2014. "The Impact of Microcredit on the Poor in Bangladesh: Revisiting the Evidence," Journal of Development Studies, Taylor & Francis Journals, vol. 50(4), pages 583-604, April.
    10. Mark M. Pitt, 2012. "Gunfight at the Not OK Corral: Reply to ‘High Noon for Microfinance’," Journal of Development Studies, Taylor & Francis Journals, vol. 48(12), pages 1886-1891, December.
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    Cited by:

    1. Ana C Rostran Molina & Anindya Banerjee & Federico Lampis, 2015. "Micro-Finance and Credit Access in the Agricultural Sector of Nicaragua," Discussion Papers 15-04, Department of Economics, University of Birmingham.
    2. Inna Cintina & Inessa Love, 2014. "The Miracle of Microfinance Revisited: Evidence from Propensity Score Matching," Working Papers 201424, University of Hawaii at Manoa, Department of Economics.
    3. Mathilde Maîtrot & Miguel Niño-Zarazúa, 2017. "Poverty and wellbeing impacts of microfinance: What do we know?," WIDER Working Paper Series 190, World Institute for Development Economic Research (UNU-WIDER).
    4. Khandker, Shahidur R. & Samad, Hussain A., 2014. "Dynamic effects of microcredit in Bangladesh," Policy Research Working Paper Series 6821, The World Bank.
    5. Terrence Kairiza & Philemon Kiprono & Vengesai Magadzire, 2017. "Gender differences in financial inclusion amongst entrepreneurs in Zimbabwe," Small Business Economics, Springer, vol. 48(1), pages 259-272, January.
    6. Khandker, Shahidur R & Samad, Hussain A, 2016. "Bangladesh’s Achievement in Poverty Reduction: The Role of Microfinance Revisited," Working Papers 114, JICA Research Institute.
    7. Vanessa S. Tchamyou & Ofeh M. Edoh, 2022. "Gender Inclusion and Sustainable Development in Africa," Working Papers of the African Governance and Development Institute. 22/086, African Governance and Development Institute..

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    Keywords

    microcredit; microfinance; replication; Bangladesh; Grameen Bank; program evaluation;
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