Publication: Microfinance and Poverty : Evidence using Panel Data from Bangladesh

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Date
2005-09-08
ISSN
doi:10.1093/wber/lhi008
Published
2005-09-08
Abstract
Microfinance supports mainly informal activities that often have a low return and low market demand. It may therefore be hypothesized that the aggregate poverty impact of microfinance is modest or even nonexistent. If true, the poverty impact of microfinance observed at the participant level represents either income redistribution or short run income generation from the microfinance intervention. This article examines the effects of microfinance on poverty reduction at both the participant and the aggregate levels using panel data from Bangladesh. The results suggest that access to microfinance contributes to poverty reduction, especially for female participants, and to overall poverty reduction at the village level. Microfinance thus helps not only poor participants but also the local economy.
Citation
Khandker, Shahidur R.. 2005. Microfinance and Poverty : Evidence using Panel Data from Bangladesh. World Bank Economic Review. © Published by Oxford University Press on behalf of the World Bank. http://hdl.handle.net/10986/16478 License: CC BY-NC-ND 3.0 IGO.
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