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Role of credit in food security and dietary diversity in Bangladesh

Author

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  • Bidisha, Sayema Haque
  • Khan, Akib
  • Imran, Khalid
  • Khondker, Bazlul H.
  • Suhrawardy, Gazi Mohammad

Abstract

This work attempts to disentangle the relationship between credit, food security, and dietary diversity in the context of Bangladesh through descriptive and econometric analyses of the Household Income and Expenditure Survey of 2010 as well as a supplementary primary survey of 1200 households. To adequately address potential selection bias, we apply a variant of propensity score matching as well as an instrumental variable technique based on the distance from the nearest financial institution to account for endogeneity in our estimates. Our analysis reveals that access to credit tends to improve food security and allows households to achieve greater dietary diversity. In particular, food security is proxied by calorie consumption, and households with credit access tend to have greater calorie consumption per capita. Dietary diversity is measured through a number of dietary diversity scores, such as the food consumption score and the household dietary diversity score, and households with access to credit score higher than those without according to such measures. The results have been found to be robust following correction for endogeneity issues, and the paper therefore provides empirical evidence in favor of policies supporting accessible credit for poor households in Bangladesh.

Suggested Citation

  • Bidisha, Sayema Haque & Khan, Akib & Imran, Khalid & Khondker, Bazlul H. & Suhrawardy, Gazi Mohammad, 2017. "Role of credit in food security and dietary diversity in Bangladesh," Economic Analysis and Policy, Elsevier, vol. 53(C), pages 33-45.
  • Handle: RePEc:eee:ecanpo:v:53:y:2017:i:c:p:33-45
    DOI: 10.1016/j.eap.2016.10.004
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    References listed on IDEAS

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    1. Abdul Wadud, 2013. "Impact of Microcredit on Agricultural Farm Performance and Food Security in Bangladesh," Working Papers 14, Institute of Microfinance (InM).
    2. Hazarika, Gautam & Sarangi, Sudipta, 2008. "Household Access to Microcredit and Child Work in Rural Malawi," World Development, Elsevier, vol. 36(5), pages 843-859, May.
    3. Rashid, Shahidur & Sharma, Manohar P & Zeller, Manfred, 2004. "Micro-Lending for small farmers in bangladesh: Does it affect farm households' land allocation decision?," Journal of Developing Areas, Tennessee State University, College of Business, vol. 37(2), pages 13-29, January-M.
    4. Asadul Islam & Chandana Maitra & Debayan Pakrashi & Russell Smyth, 2016. "Microcredit Programme Participation and Household Food Security in Rural Bangladesh," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(2), pages 448-470, June.
    5. Diagne, Aliou, 1998. "Impact of access to credit on income and food security in Malawi," FCND discussion papers 46, International Food Policy Research Institute (IFPRI).
    6. Hazarika, Gautam & Guha-Khasnobis, Basudeb, 2008. "Household Access to Microcredit and Children's Food Security in Rural Malawi: A Gender Perspective," IZA Discussion Papers 3793, Institute of Labor Economics (IZA).
    7. 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.
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    Cited by:

    1. Sayema Haque Bidisha & Tanveer Mahmood & Md. Biplob Hossain, 2021. "Assessing Food Poverty, Vulnerability and Food Consumption Inequality in the Context of COVID-19: A Case of Bangladesh," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 155(1), pages 187-210, May.
    2. Bhuiya, Mohammad Monzur Morshed & Khanam, Rasheda & Rahman, Mohammad Mafizur & Nghiem, Hong Son, 2018. "The relationship between access to microfinance, health-seeking behaviour and health service uses: Evidence from Bangladesh," Economic Analysis and Policy, Elsevier, vol. 60(C), pages 9-17.
    3. Bidisha, Sayema Haque & Hossain, Md. Amzad & Alam, Rubaiyat & Hasan, Md. Mehedi, 2018. "Credit, tenancy choice and agricultural efficiency: Evidence from the northern region of Bangladesh," Economic Analysis and Policy, Elsevier, vol. 57(C), pages 22-32.
    4. Wencong Lu & Kwabena Nyarko Addai & John N. Ng'ombe, 2021. "Impact of improved rice varieties on household food security in Northern Ghana: A doubly robust analysis," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(2), pages 342-359, March.

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    More about this item

    Keywords

    Credit; Food security; Dietary diversity; Household survey; Selection bias;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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