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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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    References listed on IDEAS

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    1. repec:pri:rpdevs:morduch_microfinance_poor is not listed on IDEAS
    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..
    3. Zaman, Hassan, 1999. "Assessing the impact of micro-credit on poverty and vulnerability in Bangladesh," Policy Research Working Paper Series 2145, The World Bank.
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    Citations

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    Cited by:

    1. Hermes, Niels & Lensink, Robert, 2011. "Microfinance: Its Impact, Outreach, and Sustainability," World Development, Elsevier, vol. 39(6), pages 875-881, June.
    2. Robert Lensink & Roselia Servin & Marrit Berg, 2017. "Do Savings and Credit Institutions Reduce Vulnerability? New Evidence From Mexico," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 63(2), pages 335-352, 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.

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    More about this item

    Keywords

    Micro-credit; Economic Hardships; Rural Bangladesh;
    All these keywords.

    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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