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Promotional role of microcredit: Evidence from the Grameen Bank of Bangladesh

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  • Md. Abul Basher

    (The World Bank, Dhaka, Bangladesh)

Abstract

This paper investigates whether the income augmenting role of microcredit is attributable only to increased participation of the borrower in economic activities or switch to more productive activities also. The paper provides a framework to analyze this question in absence of any longitudinal data. By using the data from the Grameen Bank of Bangladesh, the paper finds that microcredit enables the borrowers to move progressively into more productive activities as they become experienced. Copyright © 2009 John Wiley & Sons, Ltd.

Suggested Citation

  • Md. Abul Basher, 2010. "Promotional role of microcredit: Evidence from the Grameen Bank of Bangladesh," Journal of International Development, John Wiley & Sons, Ltd., vol. 22(4), pages 521-529.
    • Handle: RePEc:wly:jintdv:v:22:y:2010:i:4:p:521-529
    DOI: 10.1002/jid.1583
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    References listed on IDEAS

    as
    1. Nidhiya Menon, 2006. "Long-term benefits of membership in microfinance programmes," Journal of International Development, John Wiley & Sons, Ltd., vol. 18(4), pages 571-594.
    2. Hashemi, Syed M. & Schuler, Sidney Ruth & Riley, Ann P., 1996. "Rural credit programs and women's empowerment in Bangladesh," World Development, Elsevier, vol. 24(4), pages 635-653, April.
    3. Basher , Md Abul, 2001. "Towards Understanding the Mismatch between Micro and Macro Level Effects of Microcredit: Causes and Imperatives," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 27(2), pages 137-159, June.
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