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Do Microfinance Programs Change Fertility? Evidence Using Panel Data From Bangladesh

Author

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  • Andreas Kuchler

    (University of Southern Denmark
    Danmarks Nationalbank, Denmark)

Abstract

Microfinance programs have become increasingly popular instruments in development policy. Many microfinance programs are supported or subsidized by donors, a fact which calls for detailed analyses of their impacts in order to inform policymakers allocating a limited budget. Fertility reduction is often argued to be important for economic development, and a goal of many governments in developing countries is to reduce fertility. Since microfinance is widespread in Bangladesh, it is an interesting country in which to study the potential for microfinance to assist in achieving a goal of fertility reduction. This study extends the literature on impacts of microfinance by providing panel data estimates of the impacts on fertility resulting from participation in three microfinance programs in Bangladesh. Fixed effects and difference-in-differences estimators used in a quasi experimental setting show no significant effect on fertility from participation in or access to any of the programs. However, some weak evidence that fertility decreases with degree of participation is supported. Results suggest that support to microfinance programs is not the most efficient instrument for governments and organizations working towards a goal of fertility reduction.

Suggested Citation

  • Andreas Kuchler, 2012. "Do Microfinance Programs Change Fertility? Evidence Using Panel Data From Bangladesh," Journal of Developing Areas, Tennessee State University, College of Business, vol. 46(2), pages 297-313, July-Dece.
    • Handle: RePEc:jda:journl:vol.46:year:2012:issue2:pp:297-313
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    Citations

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    Cited by:

    1. Idris, Asma Rashidah & Habibullah, Muzafar & Haji Din, Badariah, 2018. "Does Financial Development Contribute to Fertility Decline in Malaysia? An Empirical Investigation," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 52(1), pages 191-203.
    2. Govindapuram Suresh, 2023. "Financial Inclusion and Its Impact on Fertility: An Empirical Investigation," Indian Journal of Human Development, , vol. 17(2), pages 344-358, August.
    3. Chen, Rui & Hartarska, Valentina, 2018. "Are All Banking Crises the Same: Evidence from MFIs," 2018 Annual Meeting, August 5-7, Washington, D.C. 274227, Agricultural and Applied Economics Association.

    More about this item

    Keywords

    Microfinance; fertility; social impacts of development programs; household behavior;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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