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Does Microfinance Reduce Poverty in Bangladesh? New Evidence from Household Panel Data

  • Katsushi S. Imai
  • MD. Shafiul Azam

The study examines whether loans from microfinance institutions (MFI) reduce poverty in Bangladesh drawing upon the nationally representative household panel with four rounds from 1997 to 2004. The effects of general microfinance loans and loans for productive purposes on income, food consumption and women's Body Mass Index are estimated. Overall effects of MFI loans on income and food consumption were positive and the purpose of the loan is important in predicting which household welfare indicator is improved. Alternative estimation methods confirm a positive impact of MFI loans on food consumption growth, which supports the poverty reducing effects of microfinance in Bangladesh.

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File URL: http://hdl.handle.net/10.1080/00220388.2012.661853
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Article provided by Taylor & Francis Journals in its journal Journal of Development Studies.

Volume (Year): 48 (2011)
Issue (Month): 5 (October)
Pages: 633-653

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Handle: RePEc:taf:jdevst:v:48:y:2012:i:5:p:633-653
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  2. Jonathan Morduch, 1998. "Does Microfinance Really Help the Poor? New Evidence from Flagship Programs in Bangladesh," Working Papers 198, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
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  8. Katsushi S. Imai & Samuel Kobina Annim, 2010. "Microfinance and Household Poverty Reduction: New evidence from India," Discussion Paper Series DP2010-14, Research Institute for Economics & Business Administration, Kobe University.
  9. Besley, T. & Coate, S., 1991. "Group Lending, Repayment Incentives And Social Collateral," Papers 152, Princeton, Woodrow Wilson School - Development Studies.
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