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Impact Assessment of Credit Program for Tenant Farmers in Bangladesh: Evidence from a Field Experiment

Listed author(s):
  • Marup Hossain

    (Food and Resource Economics Department, University of Florida)

  • Mohammad Abdul Malek

    (Faculty of Economics, The University of Tokyo, and Research and Evaluation Division (RED), BRAC)

  • Amzad Hossain

    (Department of Economics, University of Dhaka)

  • Hasib Reza

    (Research and Evaluation Division (RED), BRAC)

  • Shakil Ahmed

    (Research and Evaluation Division (RED), BRAC)

We study the role of agricultural credit on productivity and livelihoods of small, marginal, and landless tenant farmers based on a randomized control trial (RCT) field experiment in Bangladesh. Twenty percent of the eligible households from the treatment group participate in the credit program and utilize sixty percent of their loans for agricultural purposes. Results show that access to credit increases adoption of modern seed varieties, productivity, and farming income in the treatment group. We find that impacts are heterogeneous over households0 headship, tenancy status, and farm size. We also examine distributional impacts using quantile regressions and find that impacts of the credit are mostly concentrated in the upper tail of the distributions.

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File URL: http://www.cirje.e.u-tokyo.ac.jp/research/dp/2016/2016cf1025.pdf
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Paper provided by CIRJE, Faculty of Economics, University of Tokyo in its series CIRJE F-Series with number CIRJE-F-1025.

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Length: 29 pages
Date of creation: Oct 2016
Handle: RePEc:tky:fseres:2016cf1025
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  1. Alessandro Tarozzi & Jaikishan Desai & Kristin Johnson, 2015. "The Impacts of Microcredit: Evidence from Ethiopia," American Economic Journal: Applied Economics, American Economic Association, vol. 7(1), pages 54-89, January.
  2. Dethier, Jean-Jacques & Effenberger, Alexandra, 2012. "Agriculture and development: A brief review of the literature," Economic Systems, Elsevier, vol. 36(2), pages 175-205.
  3. Manuela Angelucci & Dean Karlan & Jonathan Zinman, 2015. "Microcredit Impacts: Evidence from a Randomized Microcredit Program Placement Experiment by Compartamos Banco," American Economic Journal: Applied Economics, American Economic Association, vol. 7(1), pages 151-182, January.
  4. Asadul Islam, 2011. "Medium- and Long-Term Participation in Microcredit: An Evaluation Using a New Panel Dataset from Bangladesh," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(3), pages 843-862.
  5. Ali, Daniel Ayalew & Deininger, Klaus & Duponchel, Marguerite, 2014. "Credit constraints, agricultural productivity, and rural nonfarm participation : evidence from Rwanda," Policy Research Working Paper Series 6769, The World Bank.
  6. Abhijit Banerjee & Esther Duflo & Rachel Glennerster & Cynthia Kinnan, 2015. "The Miracle of Microfinance? Evidence from a Randomized Evaluation," American Economic Journal: Applied Economics, American Economic Association, vol. 7(1), pages 22-53, January.
  7. Abhijit Banerjee & Dean Karlan & Jonathan Zinman, 2015. "Six Randomized Evaluations of Microcredit: Introduction and Further Steps," American Economic Journal: Applied Economics, American Economic Association, vol. 7(1), pages 1-21, January.
  8. Talukder, Dayal & Chile, Love, 2014. "Characteristics of Rice Cultivation and Rural Rice Market in Bangladesh: Evidence from a Survey," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 15(2), June.
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