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What Impact Does Microfinance Have on Rural Livelihood? A Comparison of Governmental and Non-Governmental Microfinance Programs in Bangladesh


  • Mazumder, Mohummed Shofi Ullah
  • Lu, Wencong


This paper analyzes the impact of different microfinance providers on basic rights and quality of life. Data were collected in two phases from 300 microfinance beneficiaries and 200 control respondents. Descriptive statistics, factor analysis, multiple regression, propensity score matching, and treatment effect models were used for analysis. Microfinance appears to increase the basic rights of respondents and help improve quality of life; the positive changes are consistently higher in non-governmental microfinance recipients. These data may help to formulate new policies that help to improve rural livelihood.

Suggested Citation

  • Mazumder, Mohummed Shofi Ullah & Lu, Wencong, 2015. "What Impact Does Microfinance Have on Rural Livelihood? A Comparison of Governmental and Non-Governmental Microfinance Programs in Bangladesh," World Development, Elsevier, vol. 68(C), pages 336-354.
  • Handle: RePEc:eee:wdevel:v:68:y:2015:i:c:p:336-354
    DOI: 10.1016/j.worlddev.2014.12.002

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    References listed on IDEAS

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    2. Karyadinata Henry Kusumas & Pudjihardjo Muhammad & Manzilati Asfi & Syafitri Wildan, 2019. "The Impact of the Suramadu Bridge on Rural Poverty in Kabupaten Bangkalan, East Java, Indonesia," Economic and Regional Studies / Studia Ekonomiczne i Regionalne, Sciendo, vol. 12(4), pages 353-361, December.
    3. Mohummed Shofi Ullah Mazumder & Md. Sekender Ali & Mahbuba Moonmoon & Farzana Zannat Toshi, 2023. "Effects of conservation farming practices on agro-ecosystem services for sustainable food security in Bangladesh," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 15(3), pages 673-692, June.
    4. Kyriazopoulos Georgios, 2019. "Financial Evaluation and Efficiency of Microfinance Institutions: A cross-country analysis," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 9(6), pages 1-1.
    5. Azad, Md Javed & Pritchard, Bill, 2022. "Financial capital as a shaper of households' adaptive capabilities to flood risk in northern Bangladesh," Ecological Economics, Elsevier, vol. 195(C).
    6. Eric Fosu Oteng-Abayie & Kofi Amanor & Anthony Kofi Osei-Fosu, 2023. "Spatial analysis of the effect of microfinance on poverty and inequality in Ghana," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 25(1), pages 196-231, June.
    7. Amit Pandey & Ravi Kiran & Rakesh Kumar Sharma, 2022. "Investigating the Impact of Financial Inclusion Drivers, Financial Literacy and Financial Initiatives in Fostering Sustainable Growth in North India," Sustainability, MDPI, vol. 14(17), pages 1-21, September.
    8. Laila Arjuman Ara & Mohammad Masudur Rahman & Chanwahn Kim, 2020. "Impact of Microcredit on Second Generation Borrowers in Bangladesh: Revisited," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 21(1), pages 142-157, March.
    9. Dilruba Khanam & Syeda Sonia Parvin & Muhammad Mohiuddin & Asadul Hoque & Zhan Su, 2018. "Financial Sustainability of Non-Governmental Microfinance Institutions (MFIs): A Cost-Efficiency Analysis of BRAC, ASA, and PROSHIKA from Bangladesh," Review of Economics & Finance, Better Advances Press, Canada, vol. 12, pages 43-56, May.
    10. Mohammad Shahjahan Chowdhury & Faisal Ahmmed & Md. Ismail Hossain, 2020. "Conditionalities of Public Microfinance and the Rural Poor: Voices From the Below," Journal of International Development, John Wiley & Sons, Ltd., vol. 32(4), pages 526-542, May.
    11. Farzana Sharmin & Ridzwan Bakar, 2018. "Effect of Household Factors on Repayment Ability among Islamic Microfinance Borrowers in Bangladesh," International Journal of Business and Management, Canadian Center of Science and Education, vol. 13(8), pages 1-40, June.
    12. Akotey, Joseph Oscar & Adjasi, Charles K.D., 2016. "Does Microcredit Increase Household Welfare in the Absence of Microinsurance?," World Development, Elsevier, vol. 77(C), pages 380-394.

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