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Does Micro-credit Program in Bangladesh Increase Household’s Ability to Deal with Economic Hardships?

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  • Hoque, Serajul

Abstract

It is often argued that micro-credit program intervention at the grassroots level increases the ability of the poor to deal with crises. This paper examines the relationship between households’ involvement in micro-credit programs and their capacities to deal with economic hardships by focussing on BRAC, one of the largest micro-credit providers in Bangladesh. Using RAND data collected in one region of rural Bangladesh, the paper addresses a key question: Do micro-credit programs increase the ability of the poor to deal with crises? The findings in this paper indicate that BRAC’s micro-credit program in Bangladesh may increase participating households’ abilities to cope with economic hardships but further research to much more systematic information needs to be conducted about micro-credit program before conclusive results can be reached.

Suggested Citation

  • Hoque, Serajul, 2008. "Does Micro-credit Program in Bangladesh Increase Household’s Ability to Deal with Economic Hardships?," MPRA Paper 6678, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:6678
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    File URL: https://mpra.ub.uni-muenchen.de/6678/1/MPRA_paper_6678.pdf
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    1. repec:pri:rpdevs:morduch_microfinance_poor is not listed on IDEAS
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    Cited by:

    1. repec:bla:revinw:v:63:y:2017:i:2:p:335-352 is not listed on IDEAS
    2. Hermes, Niels & Lensink, Robert, 2011. "Microfinance: Its Impact, Outreach, and Sustainability," World Development, Elsevier, vol. 39(6), pages 875-881, June.
    3. Becchetti, Leonardo & Castriota, Stefano, 2011. "Does Microfinance Work as a Recovery Tool After Disasters? Evidence from the 2004 Tsunami," World Development, Elsevier, vol. 39(6), pages 898-912, June.

    More about this item

    Keywords

    Micro-credit; Economic Hardships; Rural Bangladesh;

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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