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How Infrastructure and Financial Institutions Affect Rural Income and Poverty: Evidence from Bangladesh

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  • Shahidur Khandker
  • Gayatri Koolwal

Abstract

The mechanisms by which the poor benefit from economic growth remain a topic of debate in development literature. We address this issue in the context of rural Bangladesh, using a pooled dataset of three household panels between 1991-2001. Expansion of irrigation, paved roads, electricity, and access to formal and informal credit have (through different veins) led to higher rural farm and non-farm incomes, accounting for exogenous local agroclimatic endowments that explain a large part of the variation in the growth of infrastructure and credit programmes. However, this has not translated into substantial reductions in poverty for the poorest households.

Suggested Citation

  • Shahidur Khandker & Gayatri Koolwal, 2010. "How Infrastructure and Financial Institutions Affect Rural Income and Poverty: Evidence from Bangladesh," Journal of Development Studies, Taylor & Francis Journals, vol. 46(6), pages 1109-1137.
  • Handle: RePEc:taf:jdevst:v:46:y:2010:i:6:p:1109-1137
    DOI: 10.1080/00220380903108330
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    Citations

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    Cited by:

    1. Shahidur R. Khandker & Gayatri B. Koolwal, 2016. "How has microcredit supported agriculture? Evidence using panel data from Bangladesh," Agricultural Economics, International Association of Agricultural Economists, vol. 47(2), pages 157-168, March.
    2. Alastaire Sèna ALINSATO, 2015. "Globalization, Poverty And Role Of Infrastructures," Journal of Economics and Political Economy, KSP Journals, vol. 2(1s), pages 197-212, May.
    3. Teh, Benny Cheng Guan & Ngu, Ik Tien, 2016. "Perceptions and Practice of Human Security in Malaysia," Working Papers 134, JICA Research Institute.
    4. Winters, L. Alan, 2014. "Globalization, Infrastructure, and Inclusive Growth," ADBI Working Papers 464, Asian Development Bank Institute.
    5. Khandker, Shahidur R. & Samad, Hussain A., 2016. "Transformation of Rural Bangladesh: Role of Infrastructure and Financial Institutions," Working Papers 128, JICA Research Institute.
    6. Paul Chinowsky & Amy Schweikert & Niko Strzepek & Kyle Manahan & Kenneth Strzepek & C. Schlosser, 2013. "Climate change adaptation advantage for African road infrastructure," Climatic Change, Springer, vol. 117(1), pages 345-361, March.
    7. Lawrence Sáez, 2013. "Methods in governance research: a review of research approaches," Global Development Institute Working Paper Series esid-017-13, GDI, The University of Manchester.
    8. Miyazaki, Suguru & Shimamura, Yasuharu, 2014. "Risk, Infrastructure, and Rural Market Integration: Implications of Infrastructure Provision for Food Markets and Household Consumption in Rural Indonesia," Working Papers 81, JICA Research Institute.
    9. Martin Wiegand & Eric Koomen & Menno (M.) Pradhan & Christopher Edmonds, 2017. "The Impact of Road Development on Household Welfare in Rural Papua New Guinea," Tinbergen Institute Discussion Papers 17-076/V, Tinbergen Institute.
    10. repec:eee:wodepe:v:4:y:2016:i:c:p:48-59 is not listed on IDEAS

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