Impact of microfinance on household income and consumption in Bangladesh: empirical evidence from a quasi-experimental survey

Bhuiya, Mohammad Monzur Morshed and Khanam, Rasheda and Rahman, Mohammad Mafizur and Nghiem, Hong Son (2015) Impact of microfinance on household income and consumption in Bangladesh: empirical evidence from a quasi-experimental survey. In: 44th Australian Conference of Economists (ACE 2015), 7-10 July 2015, Brisbane, Australia.

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This paper analyses the impact of microfinance programs on income and consumption of households in Bangladesh. Primary data on 439 households across 20 villages in 4 districts were collected using a quasi-experimental survey approach. The sample was designed so that member households of microfinance programs were compared with non-member households of similar characteristics. In our econometric analysis, economic wellbeing is proxied using measures of household income and consumption. The empirical results indicate that despite our survey design effort, microfinance members remain poorer than non-members. But participation in microfinance has positive impacts: one percent increase in the duration of microfinance membership is associated with an increase of income and consumption per adult equivalent by 0.19 and 0.16 percent, respectively. Also, an additional month of participation in microfinance is associated with the lower probability of being poor (using $1.25 PPP per person per day) by 7 Percentage points.

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Item Type: Conference or Workshop Item (Commonwealth Reporting Category E) (Paper)
Refereed: Yes
Item Status: Live Archive
Additional Information: No evidence of copyright restrictions preventing deposit.
Faculty/School / Institute/Centre: Current - Faculty of Business, Education, Law and Arts - School of Commerce
Date Deposited: 03 Dec 2015 01:34
Last Modified: 16 Mar 2017 04:59
Uncontrolled Keywords: microfinance, households’ wellbeing, quasi-experimental survey, impact, Bangladesh
Fields of Research : 14 Economics > 1402 Applied Economics > 140218 Urban and Regional Economics
14 Economics > 1402 Applied Economics > 140202 Economic Development and Growth
Socio-Economic Objective: B Economic Development > 91 Economic Framework > 9199 Other Economic Framework > 919999 Economic Framework not elsewhere classified

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