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Credit Programmes for the Poor and Seasonality in Rural Bangladesh

  • M. M. Pitt
  • S. R. Khandker

This article examines the effect of group-based credit used to finance self-employment by landless households in Bangladesh on the seasonal pattern of household consumption and male and female labour supply. This credit can help smooth seasonal consumption by financing new productive activities whose income flows and time demands do not seasonally covary with the income generated by existing agricultural activities. The results, based upon 1991/92 survey data, strongly suggest that an important motivation for credit programme participation is the need to smooth the seasonal pattern of consumption and male labour supply. It is only the extent of lean season consumption poverty that selects household into these programmes. In addition, the largest female and male effects of credit on household consumption are during the lean season.

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Article provided by Taylor & Francis Journals in its journal Journal of Development Studies.

Volume (Year): 39 (2002)
Issue (Month): 2 ()
Pages: 1-24

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Handle: RePEc:taf:jdevst:v:39:y:2002:i:2:p:1-24
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