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Microfinance and Poverty: Evidence Using Panel Data from Bangladesh
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Microfinance and Poverty: Evidence Using Panel Data from Bangladesh
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Journal Article
Microfinance and Poverty: Evidence Using Panel Data from Bangladesh
2005
Overview
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.
Publisher
Oxford University Press,Oxford Publishing Limited(England)
Subject
