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Investigating the Role of Microcredit on Agricultural Output in Rural-Bangladesh

Author

Listed:
  • Md. Imrul Hasan

    (Prime Bank PLC, Dhaka)

  • Tanbir Hossain

    (North Western University, Khulna)

  • Sree. Dip Kumar Moholdar

    (Magura Adarsha College, Magura. Bangladesh)

  • Md. Sohel Rana

    (North Western University, Khulna)

Abstract

Microcredit or Microfinance is being considered as one of the investment-sources for local farmers who want to cultivate their land. It is highly difficult for local-farmers to collect fund for field-level investment, these farmers select micro-credit loan for seasonal-basis. The research-study attempts to explore the impact of microcredit on agricultural output. Based on a stratified random sampling technique, a total of 200 farmers in the south-west region of Bangladesh are surveyed to address the study objective. Half of the surveyed farmers are microcredit borrowers, while the rest are non-borrowers. The study findings indicate that the average agricultural output of microcredit takers is significantly higher than that of the microcredit non-takers. In the multiple regression model, educational status (ES), land Size (LS), Total Family Income (TFI), Micro-credit takers has positive and significant connection with agro-output. Inversely, yearly Family expenses affects negatively on agro-output. Within this research, ES and LS are statistically significant at 1 percent level. The author considers dummy variables as microcredit takers or non-takers, micro-credit taking farmers produce more agricultural-output compared than non-takers. A long-term sustainable agricultural-policies and green-cultivation are the major challenges for farmers.

Suggested Citation

  • Md. Imrul Hasan & Tanbir Hossain & Sree. Dip Kumar Moholdar & Md. Sohel Rana, 2025. "Investigating the Role of Microcredit on Agricultural Output in Rural-Bangladesh," Annals of the University of Craiova for Journalism, Communication and Management, Department of Communication, Journalism and Education Sciences, University of Craiova, vol. 11(1), pages 68-74, July.
    • Handle: RePEc:edt:aucjcm:v:11:y:2025:i:1:p:68-74
    DOI: 10.5281/zenodo.15851147
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    References listed on IDEAS

    as
    1. Alessandro Tarozzi & Jaikishan Desai & Kristin Johnson, 2013. "On the impact of microcredit: Evidence from a randomized intervention in rural Ethiopia," Economics Working Papers 1407, Department of Economics and Business, Universitat Pompeu Fabra.
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    3. Mahfuza Akther & Sayera Younus & Farida Parveen & Maidul Chowdhury, 2016. "Does Agricultural Credit Play Any Role in Reducing Rural Poverty in Bangladesh?," Working Papers id:10785, eSocialSciences.
    4. Khawari, Aliya, 2004. "Microfinance: Does it hold its promises? A survey of recent literature," HWWA Discussion Papers 276, Hamburg Institute of International Economics (HWWA).
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    JEL classification:

    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance

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